Invoice payment terms: common examples and how to write them

Invoice payment terms tell the customer when and how to pay. Clear terms are one of the simplest ways to get paid faster and avoid disputes.

Common payment terms

• Due on receipt: payment expected as soon as the invoice is received.
• Net 7, Net 15, Net 30, Net 60: full payment due that many days after the invoice date.
• 2/10 net 30: 2% discount if paid within 10 days, otherwise full amount due in 30.
• EOM (end of month): due at the end of the month the invoice is issued.
• 50% upfront: half paid before work starts, the balance on completion.
• Milestone payments: amounts due at agreed project stages.

Wording you can copy

• "Payment due within 30 days of invoice date (Net 30)."
• "Payment due on receipt."
• "2% discount if paid within 10 days; otherwise due in 30 days."
• "Payments received after the due date may incur a late fee of [x] as set out in our terms."

How to choose

Shorter terms improve cash flow; longer terms can win larger customers. For new or small clients, due on receipt or net 15 with a deposit is reasonable. Reserve longer terms for customers with a payment record.

Make terms visible

• Agree terms in the contract or quote before work begins.
• Show the exact due date on the invoice, not just "Net 30".
• List accepted payment methods and include a payment link.
• Repeat the terms in reminders.

Late fee and interest rules vary by jurisdiction; confirm with an adviser. When invoices still go overdue, 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

What are standard invoice payment terms?

Net 30 is the most common in B2B, but due on receipt and net 15 are widely used by small businesses.

Are payment terms legally binding?

Terms agreed in a contract generally are. Printing them only on the invoice is weaker; agree them up front.

What does EOM mean on an invoice?

End of month: payment is due at the end of the month in which the invoice was issued.

Can I change payment terms for an existing client?

Yes, with notice for future work. Confirm the change in writing before it applies.