Invoice payment terms explained

Payment terms tell your client when and how to pay. Clear terms reduce late payments and disputes. Here's what common terms mean and how to choose ones that protect your cash flow.

Common payment terms

  • Due on receipt — payment expected immediately
  • Net 7 / Net 14 / Net 30 — due within 7, 14 or 30 days
  • Deposit / milestone — part upfront, balance later

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