Invoice Payment Terms Explained

What payment terms are

Payment terms tell your client exactly when payment is due. They remove any ambiguity — instead of a vague expectation, your client has a specific date to work toward.

Due on receipt

Payment is expected immediately, as soon as the client receives the invoice. This is common for smaller jobs, one-off work, or new clients you don't have a payment history with yet.

Net 15, Net 30, Net 60

The number represents days after the invoice date. Net 15 means payment is due 15 days later, Net 30 means 30 days later, and so on. Net 30 is the most common default in B2B work, particularly with agencies and larger companies that process payments on a monthly cycle.

Custom terms

Sometimes neither a fixed “due on receipt” nor a standard Net period fits — for example, payment tied to a specific milestone or a date you've agreed on directly with the client. A custom due date covers these cases.

How to choose

Shorter terms (due on receipt, Net 15) protect your cash flow and make sense for new or smaller clients. Longer terms (Net 30, Net 60) are often expected by larger companies with fixed payment cycles, and can be a reasonable trade-off for landing bigger, more reliable work. Whatever you choose, put it on every invoice — see our Net 30 guide for more on the most common term.