HomeBlogInvoice Payment Terms Explained – Net 30, Net 15, Due on Receipt & More

Invoice Payment Terms Explained – Net 30, Net 15, Due on Receipt & More

March 22, 2026  ·  5 min read

Need to create a professional invoice right now?

Create Free Invoice – No Signup Required

Payment terms determine when you get paid. Choose the wrong terms and you'll be chasing money for weeks. Here's everything you need to know.

Most Common Invoice Payment Terms

TermMeaningBest For
Due on ReceiptPay immediately when receivedSmall jobs, new clients
Net 7Due within 7 daysSmall projects
Net 15Due within 15 daysFreelance default
Net 30Due within 30 daysB2B businesses
PIAPayment in AdvanceNew clients, large jobs
50% Deposit50% upfront, 50% on endLarge projects

What Does Net 30 Mean?

Net 30 means the total is due within 30 calendar days of the invoice date. Example: an invoice dated March 1 with Net 30 is due by March 31.

Best Payment Term for Freelancers?

Net 15 is the recommended default for freelancers. It is short enough to maintain cash flow, but reasonable enough for clients to process.

How to Include Terms on Your Invoice

On ai-invoicemaker.com, add terms in the Notes field or set the due date directly.

FAQ

What does Net 30 mean?
Net 30 means the invoice total is due within 30 calendar days of the invoice date.

Ready to create your professional invoice?

Generate PDF Invoice Free