Invoice Payment Terms: Net 30, Net 15 & Due on Receipt Explained
Learn how invoice payment terms like Net 30, Net 15, and Due on Receipt work, how to choose the right ones, and how to get paid faster—with examples.
- Comprehensive glossary of standard payment terms
- When to use Due on Receipt vs Net 15 vs Net 30
- How to negotiate favorable terms in client contracts
## Glossary of Standard Invoicing Payment Terms
Choosing the right payment terms sets clear mutual expectations between you and your client.
| Term | Meaning | Best Used For | | :--- | :--- | :--- | | **Due on Receipt** | Payment is expected immediately upon receiving the bill. | Freelancers, one-off services, digital goods. | | **Net 7 / Net 10** | Payment due within 7 to 10 calendar days. | Small businesses, ongoing freelance contracts. | | **Net 15 / Net 30** | Payment due within 15 or 30 days of the invoice date. | Corporate clients, wholesale orders, agencies. | | **2/10 Net 30** | 2% discount if paid within 10 days; full amount in 30. | Incentivizing prompt enterprise cash flow. | | **CIA (Cash in Advance)** | 100% full payment prior to commencing work. | High-risk clients, custom non-refundable builds. | | **Stage / Progress** | Tied to project milestones (e.g. 50/25/25). | Large design, development, and construction projects. |
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