Invoice Payment Terms Explained: Net 30, Due on Receipt, and More

Direct answer

Payment terms tell the buyer when the amount is due—either as a number of days after invoice date (Net X) or relative to delivery or receipt (Due on receipt).

Net 15 / Net 30 / Net 60

Net X means the full amount is due X calendar days after the invoice date (unless your contract defines business days—spell that out if it matters).

Due on receipt

Payment is expected when the invoice is received (or as soon as practical). Good for small jobs or when you want cash quickly; some clients still need a few days to process AP.

End of month (EOM)

Sometimes combined with Net terms (e.g. Net 30 EOM): due a set number of days after month-end. Define this carefully in writing.

Why it matters

Clear terms reduce “I thought it was next month” disputes. Put the same terms in your quote or contract and repeat them on the invoice.

Always align terms with what you can enforce and what your client’s accounts payable team expects.