What does Net 30 mean on an invoice?

Net 30 means the client has 30 days from the invoice date to pay. Similarly, Net 14 means 14 days and Net 60 means 60 days. The word 'net' simply means the full amount is due — no discounts are applied.

What does 'Due on Receipt' mean?

'Due on Receipt' means payment is expected as soon as the client receives the invoice. It's the fastest payment term and works best for small one-off projects or clients you already have a strong relationship with.

What does '2/10 Net 30' mean?

'2/10 Net 30' is an early-payment discount term. It means the client can take a 2% discount if they pay within 10 days, otherwise the full amount is due within 30 days.

Which payment terms should I use?

For most freelancers and small businesses, Net 14 or Net 30 strikes the right balance. Use Due on Receipt for small projects or new clients, and Net 60 only if a large client insists and your cash flow can handle the wait.

Can I charge late fees?

Yes. State your late-fee policy clearly in the invoice notes — for example, '1.5% per month on overdue balances'. Check local laws for any limits on late fees in your jurisdiction.

Invoice Payment Terms Explained (Net 30, Due on Receipt & More) | Invoice Generator Guide

What Are Invoice Payment Terms?

Payment terms tell your client when and how they should pay you. They appear on the invoice — usually in the notes or a dedicated 'Payment Terms' field — and set the legal expectation for when money is due.

Choosing the right payment terms affects how quickly you get paid and how much working capital you need to keep your business running.

Common Payment Terms Explained

Due on Receipt

Payment is expected immediately upon receiving the invoice. Best for:

Small, one-off jobs
Clients with a strong payment track record
Situations where you need cash quickly

Net 14

Payment is due 14 days after the invoice date. A good default for most freelancers and service businesses. Short enough to keep cash flowing, long enough that clients rarely push back.

Net 30

The most common payment term in business. Payment is due 30 days after the invoice date. Standard for agencies, consultants, and suppliers dealing with larger clients or other businesses.

Net 60 / Net 90

Payment is due 60 or 90 days after the invoice date. Typically used in enterprise sales or when a large client imposes their own payment policy. Expect to negotiate — and consider factoring if waiting 90 days strains your finances.

2/10 Net 30 (Early-Payment Discount)

The client can deduct 2% from the total if they pay within 10 days. Otherwise, the full amount is due within 30 days. Useful for incentivising faster payment when cash flow is a priority.

How to Set Payment Terms on Your Invoice

Choose your terms (Net 14, Net 30, Due on Receipt, etc.)
Add the term to your invoice's Payment Terms field
Also add an explicit due date — e.g., "Due: 3 March 2026" — so the client doesn't have to calculate it
Optionally include payment instructions in the notes field

InvoiceDen has a Payment Terms dropdown with common presets built in, plus a free-text option for custom terms.

Tips for Getting Paid on Time

Use shorter terms — Net 14 gets paid faster than Net 30 in practice
State a concrete due date — "Due: 17 March 2026" is clearer than "Net 30"
Add a late-fee clause — even if you never enforce it, it sets expectations
Send invoices immediately — the clock starts when you send, not when you deliver
Follow up proactively — a polite reminder 3 days before the due date often prevents late payments