Due on receipt: what it means on an invoice and when to use it

Due on receipt means the invoice should be paid as soon as the customer receives it. There is no grace period like net 30.

When it is late

Because "receipt" is vague, many businesses treat an invoice as late after a short window such as 7 days. If you want a firm deadline, print an exact due date as well.

When to use it

• One-off or small jobs.
• New customers without a payment record.
• Consumer sales and services.
• Final invoices on completed projects.

When it can backfire

Large companies often run fixed payment cycles and may ignore due on receipt terms, paying on their own schedule anyway. With those customers, agreeing explicit terms up front works better.

Making it work

• Agree the terms before work starts.
• Include a payment link so paying takes one click.
• Show an exact date: "Due on receipt — please pay by [date]".
• Send a friendly reminder after a few days if unpaid.

If invoices still slip, AI Money Recovery keeps follow-up consistent, requires your approval before anything is sent, and charges a performance fee only when money is recovered.

Frequently asked questions

How many days is due on receipt?

Technically zero. In practice many businesses allow up to 7 days before treating it as late.

Is due on receipt the same as net 0?

Yes, they mean the same thing.

Can I charge a late fee on a due on receipt invoice?

Only if late fees were agreed in your terms and are allowed where you operate.

Is due on receipt professional?

Yes. It is standard for small jobs, consumer work and new clients.