Invoice Payment Terms Explained

Payment terms tell your customer when an invoice must be paid and on what conditions. The clearest terms give an actual due date, for example "Payment due by 30 June 2026", rather than relying on jargon alone.

Below are the common terms, what they mean, and how to pick the right ones for your work.

Common payment terms and what they mean

Term	Meaning
Due on receipt	Pay as soon as the invoice arrives.
Net 7 / 7 days	Pay within 7 days of the invoice date.
Net 14 / 14 days	Pay within 14 days of the invoice date.
Net 30 / 30 days	Pay within 30 days of the invoice date.
End of month (EOM)	Pay by the end of the month the invoice is dated.
30 days EOM	Pay within 30 days after the end of the invoice month.
50% upfront	Half paid before work starts, the balance on completion.
2/10 Net 30	A 2% discount if paid within 10 days, otherwise the full amount within 30 days.

How to choose your terms

Consumers and one-off jobs

Short terms such as due on receipt or 7 days are common for household jobs, where the work is finished and the customer is there.

Business clients

Many businesses run payment cycles of 30 days. Agree terms before you start, and put them in your quote or contract as well as on the invoice.

Large or long projects

Deposits and stage payments reduce your risk and keep cash coming in.

If you didn't agree terms

For business-to-business sales in the UK, there's a default payment period that applies if nothing was agreed, and rules about how long payment terms can be. Check the late payment guidance on GOV.UK for the current position.

Wording that works

"Payment due within 14 days of the invoice date (by 14 July 2026)."
"Payment due on receipt. Thank you for your business."
"50% deposit received. Balance of £000.00 due on completion."
"Please pay by bank transfer using the invoice number as the reference."

Tips for getting paid on time

Always show a due date as well as the term.
Make paying easy: full bank details and a reference.
Invoice promptly; the clock usually starts from the invoice date.
Use the same terms consistently so customers know what to expect.

Setting terms in Invoice Today

Type your terms in the payment terms field (for example "Net 14"), set a due date, and add bank details in the notes. Both appear on the PDF.

Frequently asked questions

The full amount is due within 30 days of the invoice date. Adding the actual due date avoids confusion.

In the UK, businesses generally have a statutory right to claim interest and compensation on late payments from other businesses. Check GOV.UK for how it works and the current rates. This isn't legal advice.

It can speed up payment, but it reduces what you receive. If you're VAT-registered, check GOV.UK for how discounts affect VAT.

This is general information, not tax or legal advice. Check your own requirements with an accountant or HMRC.