How to Write Payment Terms (Net 30, Due on Receipt)

Payment terms tell your client when and how to pay — and they directly shape how fast you get paid. "Net 30" means pay within 30 days; "Due on Receipt" means pay now. This guide explains the common terms in plain English, shows a comparison, covers early-payment discounts like 2/10 Net 30, and gives you the exact wording that removes ambiguity and gets invoices paid on time.

Set your terms in seconds with the invoice generator, which puts them right on the invoice.

What "payment terms" actually mean

Payment terms are the conditions under which you expect to be paid: when payment is due, how to pay, and any incentives or penalties. They set expectations up front so there's no confusion later. The single most important rule: be specific. "Net 30" alone is weaker than "Net 30 — payment due by 3 August 2026."

The common invoice payment terms

• Due on Receipt — payment is expected immediately when the client receives the invoice. Best for small jobs, one-offs, or clients you want to pay promptly.
• Net 7 / Net 14 — payment due within 7 or 14 days. Net 14 suits many freelancers and small businesses — faster than Net 30 without feeling aggressive.
• Net 30 — payment due within 30 days of the invoice date. The B2B standard, expected by many larger companies' finance teams.
• Net 60 / Net 90 — longer terms, common with big buyers who dictate them. They tie up your cash, so use only when necessary.

Example: an invoice dated 1 March with Net 30 terms is due by 31 March.

Payment terms at a glance

Term	Pay by	Best for
Due on Receipt	Immediately	Small/one-off jobs, prompt payers
Net 7 / Net 14	7 or 14 days	Freelancers, small business
Net 30	30 days	B2B standard, larger clients
Net 60 / Net 90	60 or 90 days	Large buyers who require it

Early-payment discounts (2/10 Net 30)

You can reward fast payment with a discount, written as a short code:

• 2/10 Net 30 means "take 2% off if you pay within 10 days; otherwise the full amount is due in 30 days."

It's a small cost to you for materially faster cash flow, and many finance teams take the discount automatically. For freelancers, a simpler "2% off if paid within 7 days" line works just as well. Only offer it if the trade-off suits your margins.

Late fees: name them to be paid on time

Stating a late fee — "a 2% monthly fee applies to overdue balances" — changes client behavior even if you rarely enforce it. Only include a late fee you're actually prepared to apply, and check that your rate is allowed in your jurisdiction. Our guide on adding late fees to an invoice covers how to do it fairly.

How to word payment terms (that get paid)

Precise, polite wording beats vague terms every time:

• State the exact due date, not just the term: "Net 14 — due by 18 July 2026."
• Name the accepted methods: "Payment by bank transfer to [details] or card via [link]."
• Ask for the invoice number as a reference: "Please reference invoice #2026-014."
• Add the discount or late fee if you use them, in one clear line.

A worked example: instead of "Payment terms: Net 30," write "Payment terms: Net 30 — due by 3 Aug 2026. Bank transfer to Acct 1234; please reference #2026-014. 2% discount if paid within 10 days." The second version leaves nothing to interpret and gets paid faster.

Choosing terms for your business

Match the term to the situation: shorter terms (Due on Receipt, Net 14) for freelancers, small jobs, and new clients; Net 30 when a client's finance process expects it. When in doubt, ask for shorter terms — you can always be flexible, but you can't get back the weeks a long term costs you.

Related reading

• How to Invoice for Freelance Work and Get Paid Faster
• How to Add Late Fees to an Invoice
• What to Include on an Invoice (Complete Checklist)

FAQ

What does Net 30 mean on an invoice? Net 30 means the client must pay the full invoice amount within 30 days of the invoice date. It's the standard payment term in B2B transactions. For clarity, state the exact due date alongside it — for example "Net 30 — due by 3 August 2026."

What does "Due on Receipt" mean? Due on Receipt means payment is expected immediately when the client receives the invoice, rather than after a set number of days. It suits small or one-off jobs and clients you want to pay promptly.

What is 2/10 Net 30? 2/10 Net 30 is an early-payment discount: the client can take 2% off if they pay within 10 days, otherwise the full amount is due within 30 days. It's a small cost that can significantly speed up your cash flow.

What payment terms should I use as a freelancer? Shorter terms usually suit freelance work — Due on Receipt or Net 14 rather than Net 30 — because they get you paid faster without feeling aggressive. Always state the exact due date, and consider a deposit on larger jobs.

How do I write payment terms on an invoice? State the exact due date (not just the term), name the accepted payment methods with your details, ask the client to reference the invoice number, and add any early-payment discount or late fee in one clear line. Precise wording gets invoices paid faster than vague terms.