Invoice Payment Terms: Meanings and Examples to Copy
What Net 30, 2/10 Net 30, EOM and other payment terms mean, which to choose, and ready-to-paste wording for your invoices, including deposits and late fees.
4.8/5 on G2 · Our invoice generator is used by 50,000+ people · Updated September 2026What is an invoice payment terms?
Invoice payment terms tell the client when payment is due, how to pay and what happens if they pay late, for example "Net 30: payment due within 30 days of the invoice date".
Clear payment terms are the cheapest way to get paid faster. They set a due date, the accepted payment methods, any early-payment discount and the late fee. Put them on your quote so the client agrees to them before work starts, then repeat them on every invoice.
- Net 30 is the most common B2B term
- Freelancers and small jobs often use Net 7 or Net 14
- Shorter terms and deposits improve cash flow
- Late fees must usually be agreed in advance
- Statutory late payment rules apply to B2B invoices in the UK and EU
Common Invoice Payment Terms Explained
| Term | Meaning | Good for |
|---|---|---|
| Due on receipt | Payment due as soon as the invoice is received | Small jobs, one-off clients |
| Net 7 / Net 14 | Due 7 or 14 days after the invoice date | Freelancers, small businesses |
| Net 30 | Due 30 days after the invoice date | Most B2B invoices |
| Net 60 / Net 90 | Due 60 or 90 days after the invoice date | Large corporates, only if you can wait |
| EOM | Due at the end of the month the invoice is issued | Clients who pay in monthly runs |
| Net 30 EOM | Due 30 days after the end of the invoice month | Corporate procurement |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise the full amount in 30 | Encouraging early payment |
| 50% upfront | Half before work starts, the balance on completion | Projects and custom work |
| Milestone payments | Paid at agreed project stages | Longer projects |
| Payment in advance (CIA / PIA) | Paid before delivery | New clients, subscriptions, retainers |
| COD | Cash (or payment) on delivery | Goods delivered in person |
Payment Terms Examples to Copy
Replace the values in [brackets]. Use one due-date clause, then add methods, discounts and late fees as needed.
Due date
Payment is due within [14] days of the invoice date.
Net 30: payment is due within 30 days of the invoice date.
Payment is due on receipt of this invoice.
Payment is due by the last day of the month in which this invoice is issued.
Deposits and milestones
A [50]% deposit is due before work begins. The balance is due within [7] days of delivery.
This project is invoiced in [3] stages: [30]% on signing, [40]% at [milestone], and [30]% on completion.
Monthly retainer fees are invoiced in advance on the [1st] of each month and due within [7] days.
Payment methods
Please pay by bank transfer to the account shown, quoting invoice number [INV-0042] as the reference.
Pay online by card or PayPal using the secure link in the invoice email.
Please add any bank or transfer fees to your payment so we receive the full invoice amount.
Early payment discount
2/10 Net 30: take a 2% discount if paid within 10 days; otherwise the full amount is due within 30 days.
A [3]% discount applies if this invoice is paid in full by [date].
Late payment
Invoices unpaid after the due date incur interest of [1.5]% per month on the outstanding balance.
A late fee of [amount] applies to invoices more than [14] days overdue.
We reserve the right to pause work on accounts with overdue invoices.
Ownership of goods and deliverables remains with us until the invoice is paid in full.
(UK B2B) We reserve the right to claim statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
Disputes and queries
Please raise any query about this invoice within [7] days of receipt. Undisputed amounts remain due on the due date.
For questions about this invoice, contact [name] at [email].
Late Payment Rules by Region (B2B)
Many countries set default rules for late business payments. A summary, not legal advice.
| Region | Key rule |
|---|---|
| United Kingdom | Statutory interest of 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the debt size, unless your contract sets a different fair rate. |
| European Union | Under the Late Payment Directive, B2B payment is due in 30 days if no term is agreed and generally no more than 60 days; statutory interest is at least the ECB reference rate plus 8 points, plus at least €40 compensation. |
| United States | No federal rule for private B2B invoices. Late fees must be agreed in your contract and stay within state interest limits. |
| India | Buyers must pay registered micro and small enterprises within the agreed time, capped at 45 days (15 days if nothing is agreed), or owe compound interest at three times the RBI bank rate. |
| Australia | No general statutory rate for private invoices; set late fees in your terms. Some states have rules for specific industries such as construction. |
How to Choose Payment Terms
- Match the client: new or small clients get shorter terms or a deposit; established clients may get Net 30.
- Match your cash flow: if you pay staff or suppliers monthly, avoid Net 60 or Net 90.
- Agree terms before work starts, on the quote or contract. Copy clauses into our quotation templates or quotation terms and conditions.
- Write an exact due date on the invoice as well as the term, for example "Net 14: due 15 October 2026".
- Back your terms with a reminder schedule. Our payment reminder emails are ready to use.
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Invoice Payment Terms FAQs
What does Net 30 mean on an invoice?
Payment is due within 30 days of the invoice date. For an invoice dated 1 October, payment is due by 31 October.
What does 2/10 Net 30 mean?
The client can take a 2% discount if they pay within 10 days; otherwise the full amount is due within 30 days.
What are the best payment terms for small businesses?
Shorter terms such as Net 7 or Net 14, a deposit for new projects, and online payment options. They improve cash flow without putting off most clients.
Can I charge interest on late invoices?
Usually, if it was in your agreed terms and within local limits. In the UK and EU, statutory late payment interest can apply to B2B invoices even if not agreed. This is general information, not legal advice.
What is the difference between Net 30 and due on receipt?
Due on receipt means pay immediately; Net 30 gives the client 30 days from the invoice date.
Where do I put payment terms on an invoice?
Near the total, in a "Payment terms" line, along with the exact due date and payment details. In the free invoice generator use the Payment terms field.