Invoice Payment Terms Explained
By the BePaid team · Updated · 3 min read
Short answer
Payment terms tell your client when and how to pay an invoice. Common terms include due on receipt, net 15, net 30 (due 30 days after the invoice date) and early-payment discounts like 2/10 net 30. Agree on terms before you start work, then put both the terms and the actual due date on every invoice.
Common payment terms and what they mean
| Term | What it means | Due date example |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | Oct 1, 2026 |
| Net 7 | Due 7 days after the invoice date | Oct 8, 2026 |
| Net 15 | Due 15 days after the invoice date | Oct 16, 2026 |
| Net 30 | Due 30 days after the invoice date | Oct 31, 2026 |
| Net 60 | Due 60 days after the invoice date | Nov 30, 2026 |
| EOM | Due at the end of the month | Oct 31, 2026 |
| 2/10 net 30 | 2% discount if paid within 10 days; otherwise full amount due in 30 | Discount through Oct 11; full amount by Oct 31 |
| 50% upfront | Half before work starts, balance on completion | Deposit before start date |
| CIA / CWO | Cash in advance / cash with order | Before delivery |
"Net" terms are usually counted in calendar days from the invoice date, not business days. Some businesses count from delivery or receipt instead, which is why writing the actual due date on the invoice matters. For more detail on the most common term, see what net 30 means.
How to choose your terms
- Small jobs and individual customers: due on receipt or net 7 works well. Homeowners usually expect to pay promptly.
- Businesses and property managers: net 15 or net 30 is common, since their accounts payable teams run on schedules.
- Large or long projects: ask for a deposit upfront and bill in stages so you're not financing the whole job.
- Cash flow is tight: shorter terms or an early-payment discount can speed things up.
Early-payment discounts
With 2/10 net 30, the client can take 2% off if they pay within 10 days; otherwise the full amount is due in 30. On a $2,000 invoice, that's $1,960 if paid by day 10, or $2,000 by day 30. It can speed up payment, but it costs you margin, so use it deliberately.
Invoice dated Oct 1, 2026 · Total $2,000.00 Paid by Oct 11 → 2% discount ($40.00) → client pays $1,960.00 Paid Oct 12–Oct 31 → client pays $2,000.00 After Oct 31 → invoice is overdue
Late fees
Late fees only work if the client agreed to them before the work, usually in your contract or quote. States limit how much you can charge, and the rules vary, so check your state's laws before adding one. If you use a late fee, state it plainly on the invoice, such as "1.5% per month on balances past due, as agreed."
How to write terms on an invoice
Payment terms: Net 30 Due date: October 31, 2026 Pay by: bank transfer (details below) or check payable to Rivera Design Studio Questions? Email billing@riveradesign.com
- Agree on terms in writing before the work starts.
- Always show the actual due date, not just "Net 30."
- List every payment method you accept.
- Keep terms consistent for each client so there are no surprises.
Set terms in your invoice
The free invoice generator includes a payment terms field and calculates the due date for you. The consulting invoice template is set up for business clients on net terms, and the freelance invoice template suits smaller projects. Consultants billing companies can see typical fields on the invoice generator for consultants. In the BePaid app, invoices are marked paid, unpaid or overdue, so you can see at a glance who's past their terms. Once terms are set, read how to send an invoice for following up.
Put this into practice
Create an invoice free on the web, then finish it in the BePaid app.
Frequently asked questions
What are the most common payment terms?
Due on receipt, net 15 and net 30 are the most common for small businesses. Net 30 is typical when billing other businesses.
Does net 30 mean 30 business days?
Usually no. Net 30 typically means 30 calendar days from the invoice date. Put the actual due date on the invoice to avoid confusion.
What does 2/10 net 30 mean?
The client gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due within 30 days.
Can I add a late fee to an invoice?
Only if the client agreed to it upfront, and within your state's legal limits. Check your state's rules before charging one.