What payment terms are
The line on an invoice that says when payment is due, how to pay, and what happens if the date passes. Set them before the work starts, put them on the quote, and repeat them word for word on the invoice.
The terms and what they mean
Due on receipt
Payment is due as soon as the client gets the invoice. Use it for small one-off jobs and first-time clients, and say what you mean by soon if the timing matters.
Net 7 and net 15
Payment is due 7 or 15 days after the invoice date. Short enough to keep cash moving, long enough for the client to run a payment.
Net 30
Due 30 days from the invoice date. The default on most US invoices, and what a client with an accounts process will assume unless you say otherwise.
Net 60
Due 60 days out. Common with large companies. The wait has a cost, so price it in or negotiate it down before you accept it.
Net 30 EOM
The 30 days count from the end of the month the invoice was issued in. Invoice on the 1st and the clock runs all month before it even starts.
2/10 net 30
The client takes 2% off by paying within 10 days, otherwise the full amount is due in 30. A discount for your cash flow, priced at 2% of the invoice.
50% deposit
Half before the work starts, the balance on completion. The standard shape for jobs where materials are a big share of the price.
Progress billing
The job is billed in stages tied to milestones rather than in one invoice at the end. Each stage gets its own invoice with its own due date.
Retainer
A fixed amount billed on a schedule, usually monthly, for ongoing work. Send it as a recurring invoice so the date never slips.
How to write terms on an invoice
State the due date as a date, not only as a term: net 30 plus the day it lands on. Name how to pay and where. If you charge a late fee, state it on the invoice, not for the first time on the reminder. One line covers all of it:
Payment due by 28 September 2026 (net 30). Pay by card, ACH or check. Overdue balances accrue a 1.5% monthly late fee.
The invoice generator carries a terms field for exactly this, and when the date passes the late fee generator writes the follow-up letter with the new balance worked out.
Deposits and part payments
Ask for a deposit when you buy the materials, when the job blocks out your calendar, or when the client is new. Put it on the quote as its own line with its own due date, and invoice the balance the day the work completes. A deposit removes the financing cost and most of the risk of not being paid at all.
Terms that get you paid
Shorter terms work when the invoice is easy to pay. Put a payment link on the document so card and ACH are one tap, send the invoice the day the work finishes, and follow up the day after the due date rather than a week later. For ongoing clients, switch to a recurring invoice and the due date manages itself. The late payment statistics show what the wait costs when the terms are loose.