Invoice payment terms: net 30, due on receipt and what to put on yours
Payment terms tell the customer when and how to pay. The common terms explained, what the law says about late payment in a few countries, and which terms suit a service business.
By Primemgr TeamHow we research and check this
Payment terms are the part of an invoice that says when payment is due and how to pay. "Net 30" means the full amount is due within 30 days of the invoice date; "due on receipt" means it is due now. The shorter and clearer the terms, the sooner most invoices are paid, but terms also have to be ones your customers will accept.
Common payment terms
Term | What it means | Common for |
|---|---|---|
Due on receipt | Pay as soon as the invoice arrives | Household customers, small jobs |
Net 7 / Net 14 | Pay within 7 or 14 days of the invoice date | Trade work for households and small businesses |
Net 30 | Pay within 30 days of the invoice date | Business customers, property managers |
EOM / 30 days EOM | Pay by the end of the month, or 30 days after it | Businesses that pay suppliers in a monthly run |
Deposit, balance on completion | Part up front, the rest when the job is done | Larger jobs, special-order parts |
Progress payments | Paid in stages as work is completed | Longer projects |
2/10 net 30 | 2% discount if paid within 10 days, otherwise due in 30 | Business customers, where early cash is worth the discount |
What the law says about late payment
Rules differ by country, and most apply to business customers rather than households:
- UK: for business-to-business sales, GOV.UK explains that an agreed payment date must usually be within 60 days, and that you can charge statutory interest of 8% plus the Bank of England base rate on late commercial payments.
- Australia: business.gov.au recommends putting your payment terms on invoices and in contracts, including the methods you accept and any late fees.
- US: there is no general federal rule for private invoices; terms are whatever the contract says, and some states limit late fees and interest. Check your state before charging either.
Apart from interest the law itself provides, such as UK statutory interest on business debts, a late fee you set yourself generally needs the customer to have agreed to it before the work, so put it on the quote as well as the invoice.
Choosing terms for service work
- For households, ask for payment on completion or within 7 days. Longer terms rarely win work and often slow payment.
- For business customers, offer 14 or 30 days and put it in writing when you accept the work.
- For large jobs or ordered-in parts, take a deposit. See deposit and progress payment.
- State the due date as a date, not only as "net 14". "Due 12 October" leaves nothing to work out. The invoice due date calculator does the counting.
- List every way to pay, with the bank details or reference to use.
- Decide in advance when reminders go out, and send them on time every time.
Wording that works
"Payment due by 12 October 2026 (14 days). Pay by bank transfer to [account details], using invoice number INV-1042 as the reference. Overdue invoices may incur a fee of [amount], as set out in our quote." Short, dated, with the reference and the consequence.
Payment terms in Primemgr
In Primemgr each customer record can hold that customer’s payment terms in days, so whoever raises the invoice can see that the property manager is on 30 days and the household on 7, and each invoice carries its own due date. An overdue invoice reminder can go out automatically. Payments are recorded against the invoice when they arrive, by cash, card terminal, bank transfer or cheque, and part payments leave the balance showing as owed. For more on getting paid, see the guide on getting paid faster.
Official guidance
- Tax invoices (Australian Taxation Office)
- Invoicing and taking payment from customers (GOV.UK)
- Manage your finances (U.S. Small Business Administration)
This article is general information, not legal, tax, accounting, employment or regulatory advice. Rules differ by country, state and situation and change over time: check the official source linked above for where you work, and ask a qualified adviser before relying on it for a decision.