Invoice Payment Terms Explained: Net 30, 2/10 Net 30, Due on Receipt, EOM
Invoice payment terms tell your client when to pay. Net 30 means payment is due 30 days after the invoice date. 2/10 Net 30 offers a 2% discount for paying within 10 days, otherwise the full amount is due in 30 days. Due on receipt means pay immediately. EOM means payment is due at the end of the month.
Net 15, Net 30, Net 60: what they mean
“Net” plus a number is the most common payment term. The number is how many calendar days the client has to pay, counted from the invoice date.
- Net 15: Payment due 15 days after invoicing. Common for freelancers and small jobs.
- Net 30: Payment due 30 days after invoicing. The business standard — most B2B invoices use Net 30.
- Net 60: Payment due 60 days after invoicing. Common for large enterprises and government contracts.
Worked example: You send a $1,000 invoice on October 1 with Net 30 terms. Payment is due October 31. If you used Net 15 instead, payment would be due October 16.
2/10 Net 30: the early-payment discount
2/10 Net 30 offers the buyer a deal: pay within 10 days and take 2% off, or pay the full amount within 30 days. The “2” is the discount percent, “10” is the discount window in days, and “Net 30” is the final deadline.
Worked example: A $5,000 invoice with 2/10 Net 30 terms. Pay by day 10: $5,000 − 2% ($100) = $4,900. Pay on day 11–30: the full $5,000.
Skipping the discount is expensive. Passing up 2% for 20 extra days works out to roughly 36% annualized — far more than most business loans. If your client offers 2/10 Net 30 and you have the cash, take the discount.
Due on receipt
Due on receipt means payment is expected immediately when the client gets the invoice. In practice, most clients take a few days. Use this for small jobs, new clients, or when you need cash flow fast. Be aware it can feel aggressive to larger clients used to Net 30.
EOM (End of Month)
EOM means payment is due at the end of the month in which the invoice was issued, regardless of the date. An invoice sent October 5 and one sent October 28 are both due October 31 under EOM terms.
Worked example: You invoice $2,000 on October 12 with EOM terms. Payment is due October 31 — that’s 19 days, not 30. If you invoiced October 28, the client gets only 3 days. EOM favors early-month invoicing.
Which payment term should you choose?
Freelancers and small businesses: Net 15 or due on receipt. You need cash flow, and shorter terms get you paid faster. Most clients accept Net 15 without pushback.
Growing businesses with steady clients: Net 30. It’s the standard — clients expect it, accounting departments are set up for it, and it doesn’t strain relationships.
Large projects or enterprise clients: Net 30 with a 2/10 discount option, or staged payments (50% upfront, 50% on delivery). The discount incentivizes faster payment without demanding it.
Whatever you choose: Put it in writing before work starts, print the due date on the invoice (not just “Net 30”), and send a payment reminder if it goes overdue. If it stays unpaid, our late fee calculator shows what you can charge. For the full process, see how to create an invoice. Try the free invoice generator — it prints the due date automatically from your terms.
Last checked: October 2026. By Innvoic.