Last updated November 6, 2026
Rules and figures from other sources checked on November 6, 2026. They change, so confirm with the source before you rely on them.
General information, not tax or legal advice. The rules depend on your country and your situation, so check anything with a tax or legal consequence with your accountant.
Invoice payment terms tell the customer when to pay and how. The examples you'll meet most are due on receipt, Net 14, Net 30 and end of month. The strongest wording prints the actual due date beside the number of days, so neither side has to count.
What are the most common invoice payment terms?
The most common invoice payment terms are a set number of days after the invoice date, written as "Net" plus the number. Here is each one worked out for an invented invoice dated 2 March 2026.
| Term | What it means | Due |
|---|---|---|
| Due on receipt | Payable as soon as the customer has it | 2 March, in theory |
| Net 7 | 7 days after the invoice date | 9 March |
| Net 14 | 14 days after the invoice date | 16 March |
| Net 30 | 30 days after the invoice date | 1 April |
| Net 60 | 60 days after the invoice date | 1 May |
| EOM | By the end of the invoice's month | 31 March |
| Net 30 EOM | 30 days after the end of the invoice's month | 30 April |
| 2/10 Net 30 | 2% off if paid within 10 days, otherwise the full amount in 30 | 12 March with the discount, 1 April without |
| 50/50 | Half on acceptance, half on completion | Set by the job's dates |
"Net" here has nothing to do with net of VAT. It means the full invoice amount, VAT included, with no discount taken. People mix those two up more often than you'd think, so spell it out if a customer is new to you.
Payment terms wording you can copy
Payment terms wording works best when one sentence gives the date, the method and the reference. Change the dates and numbers to suit.
Standard terms:
Payment is due within 14 days of the invoice date, by 16 March 2026, by bank transfer to the account shown below. Please quote invoice number INV-2026-0042.
Due on receipt, with a backstop:
Payment is due on receipt and no later than 9 March 2026.
End of month:
Payment is due by 30 April 2026, which is 30 days after the end of the month of this invoice.
Early-payment discount:
A 2% discount applies if the full amount is paid by 12 March 2026. Otherwise the full amount is due by 1 April 2026.
Stage payments, on the quote:
50% is due on acceptance of this quote. The remaining 50% is due within 14 days of the completion invoice.
Late payment, for business customers:
Overdue amounts carry interest at the statutory rate for late commercial payments, from the day after the due date.
Put the same terms on the quote or contract as well as the invoice. Terms that first appear on the invoice are easy to dispute, because the customer never agreed to them. The guide to charging a late fee covers the interest rates and fixed sums.
Which payment terms should you choose?
The right payment terms depend on who the customer is and how much you spend before they pay.
| Situation | Start from | Why |
|---|---|---|
| One-off job for a private customer | Payment on completion | There's no accounts department to wait for, and no next job to hold over them |
| Small business, regular work | Net 14 | Long enough to reach a weekly or fortnightly payment run |
| Large company | Net 30, or their supplier terms | Ask how they process purchase orders and when their payment runs are before you quote |
| Public-sector body | Net 30 | The EU limit for most public authorities |
| Job with materials or subcontractors to pay first | Deposit and final payment | You aren't financing the customer's job |
| Long project | Stage payments | Cash follows the work |
| Fixed monthly fee | In advance, due before the month starts | Work never runs ahead of the money |
A short term nobody agreed to is worth less than a longer one they did. If a large customer's system pays on the 30th of the following month, Net 14 on your invoice won't change that. It will only make you chase them for two weeks.
Are there legal limits on invoice payment terms?
Yes, legal limits on payment terms exist for sales to businesses and public bodies. They don't generally cover sales to private consumers.
In the EU, the Late Payment Directive 2011/7/EU limits a contractual payment period between businesses to 60 calendar days, unless the contract expressly agrees longer and the term isn't grossly unfair to the supplier. If the contract sets no period, interest generally starts 30 calendar days after the customer receives the invoice. Public authorities generally get 30 days, and only exceptionally up to 60. Member states may set rules more favourable to the supplier, so check your national law. A regulation proposed in 2023 to replace the directive was still awaiting the Council's first-reading position when we checked.
In the UK, GOV.UK's late payment guidance gives a similar picture: an agreed date must usually be within 60 days between businesses and 30 days for public authorities, and a longer business term must be fair to both sides. With no agreed date, payment is late after 30 days. The Commercial Payments Bill would tighten this with a 60-day maximum and strictly limited exemptions. It was still going through Parliament when we checked, so read the current position before you rely on it.
What does an early-payment discount really cost?
An early-payment discount costs far more than its percentage suggests, because you are paying for only a few days of earlier money. Here's an invented €5,000 invoice on 2/10 Net 30, paid on day 10 instead of day 30.
| Step | Figure |
|---|---|
| Invoice total | €5,000 |
| Discount given | €100 |
| Cash received | €4,900 |
| Cost of having that cash 20 days sooner | €100 ÷ €4,900 = 2.04% |
| The same rate over a year | 2.04% × 365 ÷ 20 = 37.2% |
That is an expensive way to borrow, and only worth it if your cash position is tight and the alternatives cost more.
A discount also changes the VAT. Article 79 of the VAT Directive leaves prompt-payment discounts out of the taxable amount, and each country sets how you show that. In the UK, HMRC's Notice 700 asks for either a credit note or specific wording on the invoice (paragraph 18.2.2). Ask your accountant before you offer one.
The mistakes that make payment terms useless
- "Net 30" with no date. Accounts staff may count from the day the invoice was approved rather than the day it was dated.
- Different terms on the quote and the invoice. The customer will pay by whichever is later.
- A late invoice. Net 14 on an invoice sent three weeks after the job adds three weeks to your wait. Send it the day the work is done.
- No bank details, or no reference to quote. The payment arrives late, or arrives and can't be matched to anything.
- Terms you never enforce. If nobody hears from you on day 15, the customer learns what Net 14 really means. A reminder sequence fixes that.
Setting payment terms in ERPFlow
In ERPFlow, a new invoice falls due 14 days after its issue date, and you can change that due date on each one. A quote has its own Payment term (days) field, which prints on the quote PDF and sets the due date of any invoice made from it. A recurring invoice has its own payment term too.
The wording goes in the invoice's Notes field, which prints on the PDF. Your bank details come from Settings > Business Info and print on the invoice as well.
When the due date passes, the invoice reads Overdue and appears under the list's Overdue filter. Send payment reminder then emails the customer the PDF with the days overdue and the amount due. Someone has to press it: nothing goes out on a schedule.
ERPFlow doesn't calculate late fees or interest. There's no default payment term per customer, and no conditional early-payment discount: a discount % on a line applies from the start, whenever the customer pays.