Invoice Payment Terms Explained: Net 30, Net 15 & More
Payment terms tell your client when and how to pay. Clear terms reduce confusion and speed up collections.
Common Payment Terms Defined
| Term | Meaning |
|---|---|
| Due on Receipt | Payment due immediately upon receiving invoice |
| Net 15 | Payment due within 15 days of invoice date |
| Net 30 | Payment due within 30 days |
| Net 60 | Payment due within 60 days |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount due in 30 |
How to Choose Payment Terms
- New clients: Due on Receipt or Net 15
- Established corporate clients: Net 30 is industry standard
- Large projects: Milestone-based with deposits
Where to Put Payment Terms
Include terms prominently below the total amount and in your contract. Repeat them in the invoice footer.
Late Payment Consequences
State your late fee policy clearly: "Invoices unpaid after 30 days incur a 1.5% monthly late fee."
Create Invoices with Custom Terms
Generate invoices with custom payment terms using our free tool — edit due dates and terms on every invoice.