Invoice payment terms explained.
Payment terms tell the customer when and how to pay. The terms you choose change how fast you get paid and how easy it is to chase. Here are the most common terms, what each one means, and how to pick the right one for your business.
Common terms at a glance
Net 7 / 14 / 30 / 60
Payment due that many days after the invoice date.
EOM
End of Month — due on the last day of the month the invoice was issued.
2/10 Net 30
2% discount if paid in 10 days, otherwise full payment in 30.
COD / CIA
Cash on delivery / cash in advance — payment before the goods change hands.
Picking the right term
Net 7 for freelancers
Keeps cash flow healthy and is generally accepted for small jobs.
Net 14 / Net 30 for B2B
Standard for business clients; expect to be paid by the end of the window.
EOM for retail/wholesale
Aligns with a buyer’s month-end pay run.
2/10 Net 30 if cash is tight
The small discount can move payment from day 30 to day 10.
COD/CIA for risk
Use for first-time clients or higher-risk orders.
Ready to bill? Open invoice44 — free, no signup, works offline.
Frequently asked questions
What does Net 30 mean?
Net 30 means the full invoice amount is due 30 days after the invoice date. "Net" refers to the full amount with no deductions, and the number is the number of days you have to pay.
What is EOM payment terms?
EOM stands for "End of Month" — payment is due on the last day of the month in which the invoice was issued. Some businesses use "Net 30 EOM", meaning 30 days from the end of the issue month.
What does 2/10 Net 30 mean?
It offers a 2% discount if the invoice is paid within 10 days; otherwise the full amount is due within 30 days. It is a common way to encourage faster payment without changing the headline price.
Which terms are best for freelancers?
Net 7 or Net 14 are common for freelancers and keep cash flow healthy. For larger B2B clients, Net 30 is standard. Asking for a deposit up front (and a final invoice on delivery) often works better than waiting for a long net term.
Related: How to write an invoice · Invoice vs receipt · What is Net 30 · More guides