Commonly used for custom products manufactured to spec (e.g. The down payment helps reduce some risks involved with creation of the product. This scenario allows the goods producer to take a down payment before creating the product. The current delivery must be paid for in full before the next delivery.Ĭash Before Shipment. Various forms of this term can be used (e.g.

This means there’s a 1% discount if payment received within ten days otherwise payment is due 30 days after the invoice date. Rather than the companies sending full invoice payment to each other, the company owing more simply pays the difference between the two amounts. Used when two companies owe money to each other. Like PIA except payment must be fully cleared before work will proceed.Ĭash On Delivery. Used, for example, for deposits or down payments.Ĭash In Advance. Payment is due 90 days after invoice dateĮnd Of Month: Payment is due at the end of the month of invoice date Payment is due 60 days after invoice date Payment is due 30 days after invoice date Payment is due 10 days after invoice date The 17 Most Important Invoicing Payment Terms Invoice Payment Term Let’s look at a breakdown of some of the most common terms and what they mean. Some people just use and acronym like EOM, others a single sentence.

If there are PENALTIES for late paymentsįor such important pieces of information, these payment terms are usually really concise.

When you send an invoice, you’re basically saying “You owe me $XX” to the recipient. But What *Are* Invoice Payment Terms?īefore we get into the actual options when it comes to setting your invoice payment terms, let’s get on the same page about what invoice payment terms are. Is there a standard? Are you being unreasonable wanting money in your pocket even sooner? Now, you’re wondering whether you’re using the best terms. Or maybe you’ve been invoicing for a while now and you’ve simply defaulted to plugging something or other in that field. But then you notice a field on the invoice template for payment terms and you think to yourself “sh%# what do I put here?” At long last you’re getting paid for the hard work you’ve done. Imagine this: You’ve just wrapped a project and you’re about to send off the invoice.

Invoice payment terms: What they are, why they’re important and how to choose the best terms to get paid fast.

Invoice template with payment terms