Net 30 and Other Invoice Payment Terms, Explained
"Net 30" and similar terms show up on almost every invoice, but the naming isn't intuitive if you've never used it before. Here's what each one actually means.
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Create a free invoice →The term-by-term breakdown
- Net 7 / Net 15 / Net 30 / Net 60 — payment is due that many days after the invoice date. "Net 30" means 30 days, not 30 days after delivery or after the work started — the invoice date is the reference point.
- Due on receipt — payment expected as soon as the invoice arrives, with no grace period.
- End of Day (EOD) — payment due by the end of the day the invoice is issued or the work is completed.
- Cash on Delivery (COD) — payment due at the moment goods or work are delivered, rather than tied to a calendar date at all.
- Advance payment / Cash in Advance (CIA) — some or all of the payment is required before work begins, shifting risk away from the person doing the work.
How to choose
Shorter terms (Due on receipt, EOD) protect your cash flow but can feel aggressive to a new client. Longer terms (Net 30, Net 60) are standard for established relationships and larger companies with slower accounts-payable cycles, but tie up your cash longer. Advance/CIA is a reasonable middle ground for first-time or higher-risk clients — get paid before the exposure, rather than after.
Frequently asked questions
Is Net 30 the same as 30 days from delivery?
Not necessarily — by default it counts from the invoice date. If you specifically want it tied to delivery instead, say so explicitly in the terms rather than relying on the "Net 30" label alone.
Can I charge a late fee if a client misses the due date?
Often yes, but only if it was agreed to in advance — a late fee added retroactively, with no prior agreement, is much harder to enforce and can damage the client relationship. State any late fee policy on the invoice itself, upfront.
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