Basics5 min read
Payment terms every business should know
Net 15, Net 30, EOM, due on receipt — what they mean and which to use on your invoices.
Create invoice freeCommon payment terms
Due on receipt: Payment expected immediately. Best for small jobs and new clients.
Net 15: Payment due within 15 days. Common for freelancers.
Net 30: Payment due within 30 days. Standard for B2B.
Net 60/90: Used in enterprise and government. Improves client cash flow but strains yours.
Choosing the right terms
Match industry norms. Asking Net 7 from a Fortune 500 client may be ignored; Net 30 from a startup for a $200 job may be too loose.
Tighter terms for new clients; more flexibility for trusted repeat clients.
FAQ
Payment is due 30 days after the invoice date.
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