Net 30, Net 15, EOM, COD on Invoices — What They Mean and Which to Use (2026)
What Are Invoice Payment Terms?
Quick Answer: Invoice payment terms define when a client must pay. Common terms include Net 30 (pay within 30 days), Net 15 (15 days), Due on Receipt (pay immediately), EOM (end of month), PIA (pay before work starts), and COD (pay on delivery). Setting clear terms on every invoice reduces late payments and gives you legal grounds to charge interest if payment is overdue.
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Payment terms are the agreement between you and your client about when the invoice must be paid. They appear on the invoice itself and are legally binding once the client accepts your services or goods.
Without explicit payment terms, you have no enforceable deadline — and clients will pay whenever it suits them. A standard freelancer who sends invoices without payment terms often waits 45–90 days for payment that should have arrived in 14.
This guide covers every major payment term type, when to use each one, and how to add them to your invoices.
Common Invoice Payment Terms — Full Reference
Net 30
Meaning: Payment due within 30 calendar days of the invoice date.
When to use: Standard for B2B invoices. Large companies often have monthly payment runs and expect Net 30. If you're a freelancer invoicing a business client for the first time, Net 30 is a safe default.
Risk: 30 days is long enough for cash flow problems if you have large invoices. Consider moving established clients to Net 15 over time.
Net 15
Meaning: Payment due within 15 calendar days of the invoice date.
When to use: Good for freelancers, consultants, and small projects. Cuts your average payment wait in half compared to Net 30. Most small-to-medium clients accept Net 15 without pushback.
Tip: Use Net 15 as your default for new clients. You can always extend to Net 30 for clients who request it.
Net 7
Meaning: Payment due within 7 calendar days of the invoice date.
When to use: Short-term projects, one-time jobs, or when you need fast turnaround. Common in industries like event photography, same-day services, and quick consulting calls.
Note: Some clients will push back on Net 7 if they have weekly or bi-weekly payment approval cycles internally. Know your client before using this term.
Due on Receipt
Meaning: Payment is expected immediately upon receiving the invoice.
When to use: Small transactions, first-time clients with unknown payment habits, or when you have already delivered the work and want payment before moving to the next phase. Also useful for any project under €200–€500 where chasing payments would cost more than the invoice.
Reality check: "Due on receipt" is often interpreted loosely. Add a hard fallback: "Due on receipt; overdue after 7 days."
EOM — End of Month
Meaning: Payment is due at the end of the month in which the invoice was issued.
Variation: Some clients interpret EOM as "end of the following month" — always clarify in writing.
When to use: When you invoice regularly throughout the month and want to batch client payments. Common in retainer arrangements where both parties agree on a monthly settlement date. A recurring invoice generator automates these repeat bills.
Example: Invoice issued on May 8 → payment due May 31 (EOM). Or May 8 → payment due June 30 (EOM+1 month, if that is the agreed interpretation).
PIA — Payment in Advance
Meaning: Full payment is required before work begins.
When to use: New clients with no history, large projects with significant upfront costs (travel, materials, licenses), or high-risk situations. PIA is standard in some creative industries and for digital product purchases.
Alternative: 50% upfront, 50% on delivery — a practical compromise for long projects that neither party has completed before.
CIA — Cash in Advance
Meaning: Essentially the same as PIA. The client pays in full before receiving the goods or services. Sometimes used specifically for product orders where goods are shipped after payment clears.
COD — Cash on Delivery
Meaning: Payment is collected at the moment goods are delivered (or services are completed on-site).
When to use: Physical goods delivery, on-site services (plumbing, electrical, cleaning), or any situation where handing over the work and receiving payment can happen simultaneously.
Note: "Cash" in COD is historical — it now encompasses card payments, bank transfers at time of delivery, and digital payment apps.
2/10 Net 30 — Early Payment Discount
Meaning: The client gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due within 30 days.
Format: Read as "two ten net thirty."
When to use: When improving cash flow is more important than maximizing per-invoice revenue. A 2% discount on a €10,000 invoice costs you €200 but could accelerate payment by 20 days — which has real value if you're managing payroll or supplier payments.
Other variations:
1/10 Net 30— 1% discount within 10 days5/7 Net 15— 5% discount within 7 days, full amount due in 15
Payment Terms Quick Reference Table
| Term | Payment Due | Best For |
|---|---|---|
| Net 7 | 7 days from invoice date | Quick jobs, one-off projects |
| Net 15 | 15 days from invoice date | Freelancers, SMB clients |
| Net 30 | 30 days from invoice date | B2B standard, enterprise clients |
| Net 60 | 60 days from invoice date | Large enterprise (avoid if possible) |
| Due on Receipt | Immediately | Small jobs, new clients |
| EOM | End of current month | Retainers, recurring work |
| PIA / CIA | Before work begins | New clients, large projects |
| COD | On delivery | Physical goods, on-site services |
| 2/10 Net 30 | 10 days (2% off) or 30 days | When cash flow acceleration matters |
How to Choose the Right Payment Terms
For new clients
Start with Net 15 or Due on Receipt. You have no information about how this client handles payments. Shorter terms create an early expectation and filter out slow payers before they become a problem.
If the client is a large company with a formal procurement process, they may require Net 30 — accept this but confirm the exact deadline in writing.
For established clients
Once a client has paid on time consistently for 3–4 invoices, you can match their preferred payment schedule. If they have monthly payment runs, EOM may work better for both parties than Net 15 or Net 30.
For large projects
Use a payment milestone structure instead of a single payment term:
- 30–50% PIA (to cover material costs and secure commitment)
- 30–40% on milestone completion (mid-project)
- Balance on final delivery
This is not a standard payment term abbreviation — write it out explicitly in your proposal and invoice notes.
For ongoing retainers
Monthly retainers work best with EOM or Net 15 from the first of each month. Issue the invoice on the same day each month to create a predictable cycle for both sides.
How to Add Payment Terms to Your Invoice
Payment terms belong in two places on an invoice:
-
The due date field — every invoice should have an explicit due date calculated from your terms. If your terms are Net 30 and you issue on May 1, the due date is May 31. Don't make the client calculate it.
-
The payment terms or notes field — write the term explicitly: "Payment terms: Net 30. Invoice overdue after May 31, 2026."
In InvoiNova's free invoice generator, set the due date directly on the invoice form. For payment terms text, use a custom field at the invoice level (e.g., key: "Payment Terms", value: "Net 30 — due June 15, 2026") or add it to the invoice notes.
For a full guide on building your first invoice, see How to Invoice as a Freelancer.
Late Payment: Legal Framework
Setting payment terms is only useful if you enforce them. Most jurisdictions give you the right to charge interest on overdue invoices automatically — you don't need a signed contract specifying late fees in most cases.
| Region | Late Payment Law | Default Interest Rate |
|---|---|---|
| EU (B2B) | Directive 2011/7/EU | 8% + ECB base rate |
| UK | Late Payment of Commercial Debts Act 1998 | 8% + Bank of England base rate |
| Germany | §§ 286–288 BGB | 9% above base rate (B2B) |
| France | Art. L441-10 Code de commerce | ECB rate + 10 pp |
| Serbia | Law on Obligations | NBR rate + 8% |
| USA | Varies by state | Specify in contract (typically 1.5%/month) |
Practical step: Add a late payment clause to your invoices:
"Payment is due within 30 days of the invoice date. Invoices unpaid after the due date accrue interest at the statutory rate applicable in [your jurisdiction]."
This removes any ambiguity about whether interest applies. In the EU, the right to charge interest under Directive 2011/7/EU exists automatically for B2B transactions — but stating it explicitly prevents clients from claiming ignorance.
Invoice Due Date — How to Calculate It
Every invoice needs an explicit due date — not just a payment term. "Net 30" is a formula; "July 1, 2026" is an enforceable deadline.
Formula: Invoice issue date + number of days = payment due date
Calculation examples:
- Invoice issued June 1, Net 30 → payment due July 1
- Invoice issued June 15, Net 15 → payment due June 30
- Invoice issued June 20, EOM → payment due June 30
Overdue invoice: Starts the day after the due date passes without payment. In EU B2B transactions, interest accrues automatically under Directive 2011/7/EU — no separate contract required to charge late fees.
Invoice collection tip: Send a reminder 3–5 days before the due date — not only after payment is already late. A proactive reminder reduces late payments by 30–50% compared to reactive chasing.
Using InvoiNova to Enforce Payment Terms
InvoiNova's invoice generator includes:
- Explicit due date field — calculated and displayed on every PDF
- Custom fields — add "Payment Terms: Net 30" or any term as a labeled field on the invoice
- Notes section — include your late payment clause without character limits
- Invoice history — track which invoices are outstanding from the sidebar
No account required. Open the invoice generator, fill in your terms, download the PDF, and send. Payment terms are visible and enforceable from the moment the client receives it.
FAQ
Frequently asked questions
Net 30 means payment is due within 30 calendar days of the invoice date. It is the most common payment term for B2B invoices.
Net 30 starts counting from the invoice date. EOM (End of Month) means payment is due at the end of the month in which the invoice was issued, or sometimes the end of the following month.
2/10 Net 30 means the client gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due within 30 days. It incentivizes early payment without changing the standard payment window.
Yes. You can add payment terms as a custom field on your invoice — for example, 'Payment Terms: Net 30' or 'Due: 30 days from invoice date'. The due date field is also available for every invoice.
For new clients, Net 15 or Due on Receipt reduces payment delays. For established clients, Net 30 is standard. Avoid Net 60 unless the client is a large enterprise with fixed payment runs.