How to Write Payment Terms on Invoices: Net 30, Net 15, Due on Receipt
Learn how to write clear payment terms on your invoices. Understand Net 30, Net 15, Due on Receipt, and late payment penalties.
What Are Payment Terms?
Payment terms define when and how a client should pay your invoice. Clear payment terms reduce confusion, set expectations, and help you get paid on time.
Common Payment Terms Explained
- Due on Receipt — Payment is expected immediately when the invoice is received.
- Net 15 — Payment is due within 15 days of the invoice date.
- Net 30 — Payment is due within 30 days. The most common term for B2B invoices.
- Net 60 — Payment is due within 60 days. Common for large enterprises.
- 50/50 — 50% upfront before work begins, 50% on delivery.
Which Payment Terms Should You Use?
For freelancers and small businesses, Net 15 or 50/50 split is recommended. Shorter terms mean faster cash flow. Reserve Net 30 for established clients with a good payment history.
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