Invoice payment terms explained: due on receipt, Net 7, Net 15 and Net 30
Compare common invoice payment terms, choose a practical due date, and reduce ambiguity for customers.
Payment terms define when a customer is expected to pay and can materially affect cash flow. Clear terms work best when they are agreed before work starts and repeated on the invoice with an exact due date.
What the common terms mean
Due on receipt generally asks for payment immediately, while Net 7, Net 15 and Net 30 commonly indicate payment within that many calendar days of the agreed starting point.
Because organizations may interpret the starting point differently, show a specific due date as well as the shorthand term.
- Due on receipt: immediate payment expectation
- Net 7: short credit period
- Net 15: moderate credit period
- Net 30: common business-to-business term
Choose terms that fit the job
A freelancer with substantial upfront costs may use a deposit plus a shorter final payment period, while an established supplier may offer longer terms to approved customers.
The right term balances customer expectations, administrative effort, project risk and the amount of working capital your business can carry.
Make the invoice easy to approve
Include the purchase-order reference, project description, currency, tax details where applicable, exact due date and clear payment instructions.
Avoid changing agreed terms at invoice stage. For regulated late fees or collection clauses, verify the rules that apply in your jurisdiction.
This guide provides general educational information and is not legal, accounting, tax or financial advice. Requirements vary by country, industry and transaction. See how Docuivo tests its tools and calculations.