PAYMENT TERMS
Net 30, Net 15, due on receipt: payment terms that actually get you paid
Payment terms decide when an invoice is late and when reminders start; here is what each term means and when to use it.
Payment terms are the part of an invoice that says when the money is due. Net 30 means the full amount is due 30 days after the invoice date; Net 15 means 15 days; due on receipt means as soon as the client receives the invoice, in practice within a few business days. The term you choose decides when an invoice is late, when a late fee can start and when your first reminder goes out, so choose it on purpose and write it on every quote, contract and invoice.
What the terms mean.
Net 30
Net 30 is payment of the full invoice amount within 30 days of the invoice date. It is the default in US business-to-business work because it matches a monthly accounts payable cycle. “Net” means the full amount with no discount. Net 45, Net 60 and Net 90 work the same way with longer windows and are common demands from large companies.
Net 15, Net 10, Net 7
Shorter net terms give the client a defined window without waiting a month. Net 15 is a realistic standard for freelancers and small agencies billing other small companies; Net 7 or Net 10 fits retainers and recurring work where the client already expects the invoice.
Due on receipt
Due on receipt means payment is expected when the invoice arrives. It is the right term for deposits, small one-off jobs, new clients and product sales. Its weakness is that “receipt” is not a date, so add one: “Due on receipt; please pay by [date, 3 to 5 business days out].”
EOM and dated terms
“Net 30 EOM” means 30 days after the end of the month in which the invoice is dated. Some clients’ systems use it; write out the actual due date next to it so there is no ambiguity.
Which term to use.
- Due on receipt for deposits, first projects with a new client, anything under a few hundred dollars, and consumer clients.
- Net 15 for ongoing project work with small and mid-sized companies. It is short enough to keep cash moving and long enough for an approval step.
- Net 30 for corporate clients with an accounts payable department and a purchase order process. Expect it to be asked for; do not offer longer unless the price reflects it.
- Net 45 or longer only when you have priced the wait, taken a deposit, or split the work into milestones.
Terms are negotiable at the proposal stage and almost never after the invoice is sent. If a large client insists on Net 60, ask for a deposit or milestone billing in return.
How to write terms on an invoice.
Write both the term and the date: “Payment terms: Net 30. Due date: November 14, 2026.” The date is what the client’s system reads and what your reminder schedule runs from. Put the same terms on the quote and in the contract; an invoice cannot change what was agreed earlier. Place the late fee clause, if you have one, right next to the terms. Avoid “upon receipt” without a date and avoid “ASAP.” Send the invoice the day the work is delivered: Net 30 on an invoice sent two weeks late is Net 44 in reality.
Early-payment discounts: 2/10 net 30.
The notation 2/10 net 30 means the client may deduct 2 percent if they pay within 10 days; otherwise the full amount is due in 30 days. It works with large companies whose payment systems recognize the code and whose finance teams are measured on discounts captured. The cost to you is higher than it looks: giving up 2 percent to be paid 20 days earlier is equivalent to an annual rate of roughly 37 percent (2 ÷ 98 × 365 ÷ 20). Offer it when cash flow matters more than margin, or not at all. With smaller clients a deposit or a shorter net term usually achieves the same result at lower cost.
Deposits and milestones.
A deposit is a payment before work starts, invoiced due on receipt, often a quarter to half of the project price. It tests whether the client’s payment process works before you have anything at risk. Milestones split a project into stages, each invoiced on delivery with its own due date, so no single invoice carries the whole job. A retainer is a fixed monthly fee invoiced in advance, typically due on receipt or Net 7. All three reduce the amount that any one late payment can tie up, which matters more than the headline term.
How terms interact with reminders.
The due date is day zero for your reminder cadence. A reminder before it is a courtesy (“invoice due in 3 days”) and works well with Net 30 clients, whose approvals take time. After it, the usual sequence is a friendly reminder on day 1 to 3, a past due notice on day 10 to 15, and a final notice on day 30. With due on receipt there is no day zero unless you write a date, which is another reason to add one. A grace period for late fees does not move day zero; the fee simply starts later than the reminders.
Dunlio reads the due date from your CSV import or from the invoice you write in Dunlio, schedules the three stages from it, and sends them on weekdays, manually or automatically, with delivery tracking. It does not collect payments. Templates for each stage and the rules for late fees are in our guides.