What the common terms mean
For an invoice dated 10 September 2026
| Terms | Means | Due |
|---|---|---|
| On receipt | As soon as the client has it | 10 September |
| 7 days (Net 7) | 7 days after the invoice date | 17 September |
| 14 days (Net 14) | 14 days after the invoice date | 24 September |
| 30 days (Net 30) | 30 days after the invoice date | 10 October |
| 30 days EOM | 30 days after the end of the invoice's month | 30 October |
| 20th of the following month | A fixed day in the next month | 20 October |
Due-date calculator
Due
Put this on the invoice
Which to choose
- Households and one-off jobs: on receipt, or 7 days. For anything big, take a deposit before you start.
- Small businesses: 14 days. Long enough to fit a weekly payment run, short enough to plan around.
- Larger companies and government: they'll usually send their own terms, often 30 days or 30 days from the end of the month. Ask before you quote, and price for the wait.
- Ongoing work: invoice on the same day each month with the same terms, so paying you becomes a habit.
Short terms rarely lose you work. What costs you money is a vague invoice: no due date, no payment details, and nobody chasing it.
Write the date, not the code
"Net 14" means something to a bookkeeper and nothing to most households. Write the terms as a sentence with the date in it:
- Payment due within 14 days, by 24 September 2026.
- Payment due on receipt.
- Payment due 30 days after the end of the month, by 30 October 2026.
Put the same terms on the quote, so they're part of what the client agreed to, and on the invoice next to your bank details and a payment link.
When they pay late
Start polite and specific: a reminder a few days before the due date, another on the day, then firmer notes at 7 and 14 days, with the invoice attached each time, and a phone call if it's a big one. Most late payments are forgotten, not refused. What to do when an invoice is overdue has five emails to copy.
You can only charge a late fee or interest the client agreed to up front, so if you want one, put it on the quote and in your terms, and keep it reasonable. In the UK the law does it for you: business customers owe interest at 8% above the Bank of England base rate on late payments, plus a fixed £40 to £100 depending on the size of the debt, unless your contract sets its own remedy.
In Australia, check a big client first
Businesses with more than $100 million in turnover must report twice a year on how quickly they pay small business suppliers, and the reports are public on the Payment Times Reports Register (paymenttimes.gov.au). Before you accept a large client's 60-day terms, look up how long they actually take.