Invoice payment terms: due dates, Net 30 and more

What payment terms are

Payment terms are the conditions for paying an invoice: when it is due, how to pay, and sometimes what happens if payment is early or late. On the invoice they usually appear as a short label (“Net 30”) next to the due date, with the details in a terms section at the bottom.

Agree them before you start: in your quote, estimate or contract. An invoice is the place to repeat terms the client has already accepted, not to introduce new ones.

Common payment terms, with due dates

For an invoice dated 3 Nov 2026, each term gives this due date:

“Net” counts calendar days from the invoice date, weekends included. Terms based on the end of the month (EOM) are used in more than one way, so whenever you use them, print the actual due date on the invoice as well.

Choosing your terms

• Your cash flow. The longer the terms, the longer you wait for money you have already earned. Short jobs and small amounts suit short terms.
• Your client. People paying for a household service often pay on the day, so due on receipt fits. Businesses tend to pay on terms, and larger ones pay in fixed payment runs: ask when theirs is and time your invoice for it.
• What is normal in your trade. Freelancers often use Net 14 or Net 30; trades and cleaners often ask for payment on completion.
• Trust. Ask new clients for a deposit or shorter terms; offer longer terms to clients who have always paid on time.

Deposits and milestone payments

For bigger jobs, split the payment: a deposit before you start, then payments at agreed stages or on completion. For example, 30% upfront, 40% at the halfway point and 30% on delivery.

1. Agree the split in the quote or contract.
2. Ask for the deposit with a proforma invoice or an invoice for the deposit alone.
3. Invoice each stage when it is reached, naming the stage.
4. On the final invoice, show the full amount and what has already been paid, so the client sees the balance due.

When a payment arrives, a receipt confirms it.

Early payment discounts

Some businesses offer a small discount for paying early. “2/10 Net 30” means: take 2% off if you pay within 10 days; otherwise the full amount is due within 30 days. It can speed up payment, but the discount comes out of your margin, and some clients take it even when they pay late, so decide how you will handle that.

Late fees and interest

Whether you can charge a late fee or interest (and how much) depends on what you agreed with your client and on the law where you and your client are. The rules differ from country to country, and often between business clients and private customers. Put any late fee in your quote, contract or standard terms before the work starts, so the client knows about it, and check what applies before you charge one. If you are not sure, ask an accountant or a lawyer.

Neutral wording, to adapt to what you agreed and what the law allows:

“Payment is due within 30 days of the invoice date. Late payments may incur [the fee or interest you agreed], as set out in our terms and as permitted by law.”

A friendly reminder a few days before the due date, and another the day after, often works better than any fee.

Writing terms clients understand

• Print the due date, not only the label. “Due 3 Dec 2026 (Net 30)” leaves nothing to work out.
• Say how to pay. Bank details, a payment link or both, and what to put as the payment reference (the invoice number).
• Name the currency. For clients abroad, say which currency you expect and who pays transfer fees.
• Keep it short. Two or three sentences of terms get read; a page of small print does not.

Payment terms in the invoice generator

• The Payment terms field suggests Due on receipt and Net 7, 15, 30, 45 and 60. Type “Net” and a number of days, and the due date is filled in from the invoice date; Due on receipt sets it to the invoice date.
• For other terms, such as EOM, type them in and choose the due date yourself.
• Put late fee wording and other conditions in Terms; they print at the bottom of the invoice.
• Enter a deposit or part payment under Amount paid: the invoice shows what was paid and the balance due.
• “New” keeps your terms for the next invoice and moves the due date along with the new date.

More on what goes on an invoice in the guide to writing an invoice, and on numbering in the invoice number guide.