Invoice payment terms explained

Payment terms tell your client when you expect to be paid. Getting them right has a direct impact on your cash flow.

Common payment terms

• Due on receipt — payment expected immediately when the invoice is received
• Net 7 — payment due within 7 days
• Net 14 — payment due within 14 days
• Net 30 — payment due within 30 days (standard for larger businesses)
• Due on completion — payment expected when the work is finished

What to use for trade work

For most trade work (plumbers, electricians, builders, etc.), due on completion or Net 7 is standard. Clients expect to pay promptly once the work is done. Net 30 is more common in B2B service businesses.

Deposits

For larger jobs it is common to request a deposit upfront (typically 25–50%) before starting work. This reduces your risk and commits the client. Send a separate invoice for the deposit, then a final invoice for the remainder on completion.

Setting due dates in BillSend

BillSend lets you set a due date on every invoice. Invoices that pass their due date are automatically flagged as overdue on your dashboard so nothing slips through.