Invoice Payment Terms Explained: Due on Receipt, Net 7, Net 15, Net 30
Last updated: November 2026
Payment terms are the part of an invoice that tells your client when and how to pay. Getting them right helps you get paid on time. Here is what the common terms mean and how to choose between them.
What are payment terms?
Payment terms are the conditions you set for paying an invoice. They usually state the number of days the client has to pay, and sometimes mention late fees or accepted payment methods.
Common payment terms
- Due on receipt: payment is expected as soon as the client receives the invoice.
- Net 7: payment is due within 7 days of the invoice date.
- Net 15: payment is due within 15 days.
- Net 30: payment is due within 30 days. This is common with larger companies.
- Deposit or milestone payments: part of the fee is paid up front or at agreed stages of the project.
How to choose the right terms
For small projects and new clients, shorter terms such as due on receipt or Net 7 reduce risk. For larger companies, Net 30 is often standard because of their internal approval process. For big projects, ask for a deposit before you begin.
Whatever you choose, agree on it with the client before the work starts, so the invoice contains no surprises.
How to write payment terms on an invoice
Keep it short and specific. Examples you can paste into the Notes box:
- Payment due within 7 days of the invoice date.
- Payment due within 30 days. Bank transfer details are below.
- 50% deposit paid. Remaining balance due on delivery.
What about late payments?
If you want to charge a late fee, state it in the terms and make sure the client has agreed to it. Rules about late fees differ by country, so check the local rules before adding one. A polite reminder on the day after the due date solves most late payments without any fee.
Add your terms to an invoice
Our free generator has a Notes box where you can type your payment terms, so they appear on the PDF.