The common terms and what they mean
- Due on receipt — payment expected immediately. Best for one-off jobs and new clients.
- Net 7 / Net 14 / Net 30 — payment due that many days after the invoice date.
- EOM (end of month) — due at the end of the month the invoice falls in.
- 30 days EOM — due 30 days after the end of the invoice month, which can mean nearly 60 days. Read these carefully.
- 50% up front — half before work starts, balance on completion. Standard for larger jobs and materials-heavy trades.
What applies if you agree nothing
For business-to-business work with no agreed terms, the default is 30 days from the invoice date or delivery, whichever is later. Relying on the default is a weak position, though — it's better to state terms explicitly on the quote and again on the invoice.
Choosing terms that protect you
Shorter terms are almost always better for a small business, and clients rarely object if you set them from the start. The mistake is offering 30 days by default to a client who would have paid on receipt.
For jobs where you're buying materials, a deposit isn't cheeky — it stops you financing someone else's project. Put it in the quote so it's agreed before work starts rather than negotiated afterwards.
Whatever you choose, show a specific due date on the invoice rather than the terms alone. "Due 14 August" is harder to ignore than "Net 14".