Invoice payment terms explained: Net 30, due on receipt, and which to use
By SendPay Business · · 2 min read
Payment terms tell your customer when they have to pay. They're one line on the invoice, but they decide whether money arrives next week or next quarter. Here's what the common terms mean and how to choose.
The common terms, in plain English
These are the ones you'll see most often.
- Due on receipt: pay as soon as the invoice arrives.
- Net 7, Net 14, Net 30: pay within 7, 14 or 30 days of the invoice date.
- EOM (end of month): pay by the end of the month the invoice is dated in.
- Net 30 EOM: pay within 30 days after the end of that month, so up to about 60 days.
- 50% upfront: half before the work starts, the rest on completion.
- 2/10 Net 30: take 2% off if you pay within 10 days, otherwise pay the full amount within 30.
Which terms get you paid fastest
Shorter terms get money in sooner, but only if the customer can actually pay quickly. For one-off jobs and individual customers, due on receipt or Net 7 with a pay-by-card link works well. For businesses with an accounts team, Net 14 or Net 30 is normal, and asking for less can slow things down if it doesn't fit their payment run.
For big jobs, a deposit up front protects you if the customer disappears halfway through.
What happens if you set no terms
For business-to-business sales in the UK, if no payment date was agreed, payment is due 30 days after the customer receives the invoice or the goods or services, whichever is later. After that you can claim statutory late payment interest.
Make the terms impossible to miss
Write the terms and the actual due date near the total, for example "Payment due within 14 days, by 13 October". A date is harder to overlook than "Net 14".
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Build my platform →Questions people ask
What does Net 30 mean on an invoice?
The customer must pay the full amount within 30 days of the invoice date.
Is due on receipt the same as immediate payment?
Yes. It means pay as soon as the invoice arrives. In practice most people pay within a few days.
How do I work out the exact due date?
Put the invoice date and terms into the free due date calculator and it shows the day, including end-of-month terms.
Open the due date calculator →Where can I make an invoice with payment terms?
The free invoice generator lets you set a due date, add your terms in the notes, and save the invoice as a PDF.
Open the invoice generator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.