Invoice Payment Terms: What to Write and When Payment Is Due

What the common terms mean

Specify what starts the clock. A customer may count from receipt while you count from issue, especially if the invoice arrived late or went to the wrong inbox. Intuit’s payment-terms guide explains common usage; your actual agreement should remove the ambiguity.

• Due on receipt: payment is expected when the customer receives the invoice.
• Net 7: the full amount is due seven days after the agreed starting date, commonly the invoice date.
• Net 14: the same arrangement with fourteen days to pay.
• Net 30: thirty days to pay from the agreed starting date.

• Intuit: definitions of common invoice payment terms

Turn the term into a calendar date

For an invoice issued October 22, 2026, with calendar days counted from the invoice date, Net 7 gives October 29, Net 14 gives November 5 and Net 30 gives November 21. These are date calculations, not a rule about what terms your business must offer.

November 21, 2026 is a Saturday. If you intend a different deadline when a date falls on a weekend or holiday, agree and state that explicitly. Do not assume the customer will use your preferred business-day convention.

Choose terms that work for this customer and job

For a small residential repair, payment at completion may suit both sides if that was agreed when booking. A business customer may need a purchase order and an accounts-payable approval before paying. Ask about that process before choosing a deadline you cannot realistically expect them to meet.

A longer term means you wait longer for the money. Consider the materials and labour you will have paid for before the customer pays you. If you need an upfront payment, agree the amount and conditions before starting work; do not spring a new deposit requirement on the final bill.

Net 30 is an option, not an automatic entitlement or a universal requirement for service businesses. Keep any existing contract or purchase-order terms in mind.

Plain wording is enough

Include the amount still owed, currency, due date, payment method and reference. If a deposit is already applied, the amount you request should be the remaining balance rather than the full job total.

Example text

The remaining $478.00 CAD is due October 29, 2026. Please send an e-Transfer to billing@willowbend.example and include invoice #307 as the reference. This is fictional example wording, not a payment request.

Avoid adding new penalties after the work

Do not treat wording added to the final invoice as proof that a customer agreed to new late fees or interest. Their enforceability and any limits depend on the agreement and applicable law. Get local advice before relying on a charge, especially for consumer work.

If the invoice is overdue, first check the recipient, agreed due date, any dispute and payments already received. A polite follow-up identifying the invoice and balance is more useful than a generic demand based on the wrong deadline.

Use an explicit date in your InvoicePaw draft

Tell InvoicePaw the due date you want and check it in the preview. You can correct the date before replying YES. Adding payment terms does not schedule a collection or reminder: customers pay through your instructions, and InvoicePaw does not send automatic payment reminders.