Invoice payment terms: Net 30, due dates and late fees
Payment terms tell your client when to pay and what happens if they don’t. Here’s what the common ones mean, with calculators for due dates, early-payment discounts and late interest.
Common payment terms
| Term | Meaning |
|---|---|
| Due on receipt | Pay as soon as the invoice arrives. |
| Net 7 / 14 / 15 | Full amount due 7, 14 or 15 days after the invoice date. |
| Net 30 | Full amount due 30 days after the invoice date. The most common B2B term. |
| Net 60 / 90 | Long terms, often demanded by large buyers. |
| Net 30 EOM | Due 30 days after the end of the month the invoice was issued. |
| 2/10 net 30 | 2% off if paid within 10 days, otherwise full amount in 30. |
| CIA / CWO | Cash in advance / cash with order: pay before delivery. |
| 50% upfront | Half as a deposit before work starts, balance on completion. |
Calculators
Invoice due date calculator
What does “2/10 net 30” really cost?
An early-payment discount looks small, but it’s paid for only a few days of speed. Here’s the annualised cost to you.
Late payment interest calculator
UK business-to-business debts: statutory interest is 8% plus the Bank of England base rate, and you may also claim fixed compensation of £40, £70 or £100 by debt size (here: £70). Enter 8 + the current base rate above. Source: GOV.UK late commercial payments.
Late payment: what the law says
- UK: for business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 allows statutory interest of 8% above the Bank of England base rate plus fixed compensation, unless your contract sets a different remedy (GOV.UK).
- EU: Directive 2011/7/EU on combating late payment sets statutory interest of at least 8 percentage points above the reference rate and a minimum €40 compensation for recovery costs in commercial transactions; national laws implement the details.
- US: there’s no single federal rule for private invoices; late fees and interest depend on your contract and state law, including state usury limits.
General information only. This page summarises official guidance so you know what to look for. It is not tax, legal or accounting advice, and rules change. Check the linked official source or a qualified adviser for your situation.
Getting paid on time
- Agree terms before work starts and repeat them on the invoice.
- Print an actual due date, not just “Net 30”. The generator fills it in from your terms.
- Invoice the day you deliver.
- Send a polite reminder a few days before the due date, then on the day after. Our email templates include reminders.
Questions people ask
What does Net 30 mean?
Net 30 means the full (net) amount is due 30 calendar days after the invoice date. An invoice dated 1 March on Net 30 is due 31 March.
Does Net 30 include weekends?
Yes. Net terms count calendar days, not business days, unless your contract says otherwise.
Is Net 30 from the invoice date or the delivery date?
Normally from the invoice date. Some contracts count from receipt of goods or the end of the month (“Net 30 EOM”). Put the actual due date on the invoice so there is no doubt.
What does 2/10 net 30 mean?
The buyer may take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30 days.
Which payment terms should a freelancer use?
Shorter terms get you paid sooner. Many freelancers use Net 14 or Net 15, or due on receipt for small jobs. Large companies may insist on their own terms, often Net 30 to Net 60.
Can I charge a late fee?
You can charge interest or a fee if it was agreed in your contract or terms, or where the law provides one (such as UK statutory interest on business debts). Put the terms on the invoice.