How-to
Payment Terms Explained: Net 30, Net 14 & Due on Receipt
·5 min read
Payment terms tell your client when you expect to be paid. They're a small part of an invoice that has an outsized effect on your cash flow — vague or missing terms are one of the biggest causes of late payment. Here's what the common terms mean and how to choose the right one.
What "payment terms" means
Payment terms are the agreed conditions for paying an invoice — chiefly the deadline. They're usually written as "Net X", where X is the number of days the client has to pay from the invoice date.
The common payment terms
- Due on receipt — payment is expected immediately when the invoice arrives. Best for one-off jobs and new clients.
- Net 7 — pay within 7 days. Good for small jobs and keeping cash flow tight.
- Net 14 — pay within 14 days. A common, reasonable default for small businesses.
- Net 30 — pay within 30 days. Standard for larger or corporate clients, but slower for your cash flow.
- Deposit / part-payment — e.g. 50% up front, balance on completion. Sensible for bigger jobs or material costs.
Always show a real date
"Net 14" means nothing to a busy client unless you also show the actual due date — e.g. "Due 5 July 2026". Invoices with a concrete due date get paid noticeably faster than ones with only a term.
Which payment terms should you use?
There's no single right answer, but a good rule of thumb:
- New clients and small jobs — due on receipt or Net 7, to protect your cash flow.
- Established clients — Net 14 is a friendly, professional default.
- Larger companies — they often insist on Net 30; build that delay into your planning.
- Big or material-heavy jobs — take a deposit up front so you're not financing the work.
How to set terms that get you paid
- Agree terms before the work — put them on the quote, not just the invoice, so there are no surprises.
- State a concrete due date on every invoice.
- Make paying easy — include your bank details and accepted methods.
- Be consistent — apply the same terms to similar clients so chasing feels routine, not personal.
- Follow up promptly when something's overdue — see how to ask for payment politely.
Terms belong on both documents in your workflow: agree them on the quote, then carry them onto the invoice. Jotquote lets you set per-client payment terms once, then applies the due date automatically whenever you turn a quote into an invoice.
Set payment terms once, apply them automatically
Per-client terms flow straight onto every invoice's due date.
See the invoice appFrequently asked questions
What does Net 30 mean?
Net 30 means the full invoice amount is due within 30 days of the invoice date. Net 14 and Net 7 work the same way with 14 and 7 days respectively.
What does "due on receipt" mean?
Due on receipt means payment is expected as soon as the client receives the invoice, rather than after a set number of days. It's common for one-off jobs and new clients.
What are the best payment terms for a small business?
Net 14 is a reasonable default for established clients, while due on receipt or Net 7 protects your cash flow with new clients and small jobs. For large or material-heavy work, take a deposit up front.
Should payment terms go on the quote or the invoice?
Both. Agree the terms on the quote so the client knows them before the work starts, then repeat them on the invoice with a concrete due date.
