InvoiceGenerator

Invoice Payment Terms Explained (Net 7 to Net 60)

Payment terms tell the buyer when the money is due. They live at the bottom of the invoice, but they set the rhythm of your whole cash flow.

Quick answer: Net 14 means payment is due 14 days after the invoice date. Net 30 is the corporate default, net 7 or COD suits small clients, and EOM means due at the end of the month in which the invoice is issued.

The common terms

  • COD / due on receipt — payable immediately
  • Net 7 / Net 14 — small clients, freelance work
  • Net 30 — the corporate standard
  • Net 60 — only for large slow cycles, price it in
  • EOM — due end of issue month
  • 50% upfront / balance on delivery — deposits

Which one to choose

Match the client's accounts-payable cycle: freelancers can demand net 7; agencies live on net 30; enterprise procurement often assumes net 45–60 regardless of what you print — build that delay into pricing instead of fighting it.

Due date vs terms

Print both: 'Payment terms: Net 14. Due date: 24 Sep 2026.' An explicit calendar date removes all ambiguity — the generator has a dedicated due-date field.

Frequently Asked Questions

Can I charge late fees?
Often yes, if the invoice states the terms and your jurisdiction allows it — but a stated fixed reminder process usually recovers money faster than fees.
What does '2/10 net 30' mean?
A discount: 2% off if paid within 10 days, otherwise full amount in 30. It is a classic tool for pulling cash forward.

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