UtilityApril 2026·8 min read
How to Write Payment Terms on an Invoice (2026 Guide)
Understand Net 30, Net 60, Due on Receipt, and other invoice payment terms. Learn how to set terms that get you paid faster without losing clients.
📋 Set payment terms in our free Invoice Generator
Free, no signup required. 100% browser-based.
⚡ Key Takeaways
- Understand Net 30, Net 60, Due on Receipt, and other invoice payment terms.
- Covers common payment terms explained.
- How to Choose the Right Terms.
- Covers handling late payments.
- Covers encouraging early payment.
Common Payment Terms Explained
Due on Receipt — Payment due immediately upon receiving the invoice
Net 7 — Due within 7 days
Net 15 — Due within 15 days
Net 30 — Due within 30 days (most common)
Net 45 — Due within 45 days
Net 60 — Due within 60 days (enterprise/government)
Net 90 — Due within 90 days (large contracts)
2/10 Net 30 — 2% discount if paid within 10 days, otherwise due in 30
Net 7 — Due within 7 days
Net 15 — Due within 15 days
Net 30 — Due within 30 days (most common)
Net 45 — Due within 45 days
Net 60 — Due within 60 days (enterprise/government)
Net 90 — Due within 90 days (large contracts)
2/10 Net 30 — 2% discount if paid within 10 days, otherwise due in 30
Our Invoice Generator supports all of these terms and automatically calculates the due date based on the invoice date.
How to Choose the Right Terms
Your payment terms should balance cash flow needs with client expectations. Here's a framework:
💡 Tip
Always include
-webkit-backdrop-filter alongside backdrop-filter for Safari support. Without the prefix, the effect is invisible to roughly 25% of mobile users.- Freelancers and solopreneurs: Due on Receipt or Net 15. You likely can't afford to float 30-60 days of expenses.
- Small businesses: Net 30 is the industry standard and what most clients expect.
- Enterprise and government contracts: Net 45 to Net 90 is common. Factor this into your pricing.
- Retainer clients: Due on Receipt at the start of each billing period.
Pro tip: New client? Start with Net 15 or require a deposit. Once trust is established, you can extend to Net 30 if needed.
Handling Late Payments
Include your late payment policy directly on the invoice. Transparency prevents disputes.
⚠ Warning
On iOS Safari,
backdrop-filter inside a position: fixed element can cause severe scroll performance issues. Test thoroughly on real iOS devices.- State the late fee clearly: “A late fee of 1.5% per month will be applied to overdue balances”
- Send a friendly reminder 3 days before the due date
- Follow up on day 1 after the due date — the longer you wait, the harder collection becomes
- See our late payment follow-up guide for email templates
Encouraging Early Payment
The most effective strategy is making payment easy and incentivizing speed:
- Offer a small discount: “2% discount if paid within 10 days” can dramatically improve cash flow
- Accept multiple payment methods: The Invoice Generator's payment info section supports bank transfer, PayPal, Venmo, and custom fields
- Invoice promptly: The faster you invoice, the faster you get paid. Don't batch invoices monthly if you can invoice upon completion
- Make payment info prominent: Include bank details or payment links directly on the invoice
DG
Derek Giordano
Founder of Ultimate Design Tools. Building free tools for designers and developers.
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