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Understanding Payment Terms in Invoicing: Net 30, Net 60 & More | CreateOnlineInvoice

Published on May 16, 2025

Are you confused by payment terms like Net 30, Net 60, or Due on Receipt? Understanding these terms is crucial to managing your cash flow and avoiding payment delays. With CreateOnlineInvoice, you can easily set and communicate clear payment terms that help you get paid on time, every time.

What Are Payment Terms?

Payment terms specify when a client must pay your invoice after it’s issued. They set clear expectations and help avoid misunderstandings. The most common payment terms include:

Net 30: Payment due within 30 days of the invoice date

Net 60: Payment due within 60 days

Due on Receipt: Payment expected immediately upon receiving the invoice

Net 15, Net 45, Net 90: Other common variations depending on agreement

COD (Cash on Delivery): Payment due when goods/services are delivered

Why Are Payment Terms Important?

Using clear payment terms benefits your business by:

✔️ Improving cash flow predictability

✔️ Setting client expectations upfront

✔️ Reducing late payments and disputes

✔️ Simplifying bookkeeping and financial planning

✔️ Building professional relationships with clients

How CreateOnlineInvoice Helps You Manage Payment Terms

When you use CreateOnlineInvoice, you get powerful tools to make payment terms crystal clear and hassle-free:

🔹 Easy selection of payment terms like Net 30, Net 60, Due on Receipt, and custom terms

🔹 Automatic calculation of payment due dates based on your chosen terms

🔹 Clear display of payment terms on every invoice sent

🔹 Customizable templates that highlight due dates and payment instructions

🔹 Automated reminders to clients when payments are near or overdue

🔹 Integration with payment gateways for faster online payments

Popular Payment Terms Explained

🔸 Net 30

Payment due within 30 days

Most common in B2B transactions

Balances client flexibility and your cash flow needs

🔸 Net 60

Payment due within 60 days

Used for long-term contracts or large projects

Requires strong client trust and clear communication

🔸 Due on Receipt

Payment expected immediately

Ideal for small projects, freelancers, or one-time sales

Speeds up cash flow but may limit client flexibility

🔸 Other Terms

Net 15: Payment within 15 days for quick turnaround

Net 45 and Net 90: Longer terms for larger businesses or special agreements

COD: Payment when goods or services are delivered

Best Practices for Setting Payment Terms

📌 Discuss and agree on terms before starting work

📌 Use CreateOnlineInvoice to clearly state terms on every invoice

📌 Consider your cash flow needs and client’s payment habits

📌 Offer incentives for early payments (e.g., discounts)

📌 Be consistent with terms to avoid confusion

📌 Follow up politely but firmly on overdue payments

How to Add Payment Terms in CreateOnlineInvoice

Log in or visit CreateOnlineInvoice.com

Choose your invoice template

Enter client and business details

Select payment terms from the drop-down menu (Net 30, Net 60, etc.)

The system auto-calculates the due date for you

Customize payment instructions and methods

Send your professional invoice instantly by email or download as PDF

Bonus Tips to Avoid Payment Delays

🚀 Send invoices promptly after job completion

🚀 Use our automatic payment reminders feature

🚀 Include multiple payment methods to make paying easy

🚀 Personalize messages to clients thanking them for timely payments

🚀 Track invoice status from your dashboard anytime

Why Choose CreateOnlineInvoice?

⚡ Fast and intuitive invoice creation

⚡ No complicated setup—start invoicing in minutes

⚡ Professional templates tailored for any industry

⚡ Cloud storage keeps your invoices safe and accessible

⚡ 100% free to create and send unlimited invoices

⚡ Designed to help you get paid faster

Get Started Today!

Don’t let unclear payment terms slow down your business growth. Use CreateOnlineInvoice to create invoices with clear payment terms that your clients understand—and pay on time.

➡️ Visit CreateOnlineInvoice.com now
➡️ Create your first professional invoice for free—no signup required!

Simplify your invoicing. Clarify payment terms. Get paid faster with CreateOnlineInvoice!