Confused by invoice payment terms? Learn what Net 30, Due on Receipt, and other terms mean and how to choose the right ones for your business.
What do payment terms mean?
Payment terms specify when you expect to be paid after sending an invoice. Common terms include: Due on Receipt (pay immediately), Net 15 (pay within 15 days), Net 30 (pay within 30 days), Net 60 (pay within 60 days), and 2/10 Net 30 (2% discount if paid within 10 days, otherwise due in 30).
Choosing the right terms for your business
For new clients, start with shorter terms like Net 15 or require a deposit upfront. Established clients with good payment history can have Net 30. Large enterprises often expect Net 60. Always put payment terms in writing in your contract and on every invoice.
How to enforce payment terms
Clearly state terms on every invoice. Send reminders before the due date. Follow up promptly when payments are late. Consider late payment fees (1-2% per month is standard). ZeroDue automates all of this—set it once and the system handles reminders for you.
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