Invoice payment terms explained

Updated 5 November 2026

Payment terms tell your client when an invoice must be paid. “Net 30” means the full amount is due 30 days after the invoice date, “Due on receipt” means pay now, and “2/10 Net 30” offers a 2% discount for paying within 10 days. Always print the exact due date too.

Common invoice payment terms

Term	Meaning
Due on receipt	Pay as soon as the invoice arrives.
Net 7 / Net 14	Pay within 7 or 14 days of the invoice date.
Net 30	Pay within 30 days of the invoice date.
Net 60 / Net 90	Pay within 60 or 90 days. Common with large companies.
EOM	Pay by the end of the month the invoice is dated in.
2/10 Net 30	Take 2% off if paid within 10 days; otherwise the full amount is due in 30 days.
CIA / CWO	Cash in advance or cash with order: pay before work starts.

Which payment terms should I choose?

Pick the shortest terms your clients will accept. Individuals and small clients usually pay on receipt or within 7–14 days. Larger companies often have fixed payment cycles of 30 days or more, and their accounts team may insist on them. For big projects, ask for a deposit up front and record it as “Amount paid” on the final invoice.

How do I write payment terms on an invoice?

Show both the term and the date, for example: “Due date: 5 December 2026 (Net 30)”. In the invoice generator, the “Due in” buttons set the due date for you, and you can add late-payment terms in the Terms box.

Can I charge late fees?

Usually yes, if you agreed them with the client in advance. Some countries also give businesses a legal right to interest on late payments, for example the UK’s Late Payment of Commercial Debts Act. State the fee on the invoice so it is clear.

Make one now: the free invoice generator creates a PDF invoice in your browser, with no sign-up.