Invoice Payment Terms Explained
Payment terms tell your client when and how to pay. Clear terms reduce late payments and awkward follow-ups.
Common terms
- Due on receipt: payment is expected immediately.
- Net 7 / Net 14 / Net 30: payment is due 7, 14 or 30 days after the invoice date.
- EOM (end of month): payment due at the end of the month the invoice is issued.
- Upfront / deposit: part of the fee (for example 50%) is paid before work starts.
Write a date, not just a term
"Due 14 Nov 2026" is less ambiguous than "Net 30". Billowly shows an explicit due date on every invoice.
Late payment
In the EU, the Late Payment Directive (2011/7/EU) allows businesses to charge statutory interest and a fixed minimum compensation of €40 for recovery costs on late B2B payments. National rules apply, so check how this works in your country before adding it to your terms.
Tips
- Agree terms in writing before you start work.
- Put your bank details (IBAN/BIC) on the invoice.
- Send a polite reminder a few days after the due date.