The common payment terms
The most common due-date shorthand:
- Due on receipt — payment due immediately when the invoice is received
- Net 7 — payment due 7 days after the invoice date
- Net 15 — payment due 15 days after the invoice date
- Net 30 — payment due 30 days after the invoice date (the most common in B2B)
- Net 60 / net 90 — payment due 60 or 90 days later (large enterprises, government)
- 2/10 net 30 — 2% discount if paid in 10 days, otherwise full amount due in 30
- COD — cash on delivery, paid before or at delivery
Which to use for small service businesses
The tradition of net 30 comes from when mailed checks were the default. It's no longer necessary for most B2C or small-business B2B transactions. Due on receipt or net 7 is more common now and gets you paid faster without pushback.
For larger B2B customers who require net 30 (or longer), match the requirement or you won't win the work. But for cash-paying homeowners and small commercial customers, default short.
When to offer early-payment discounts
A 2/10 net 30 term (2% off if paid in 10 days) works well for larger B2B invoices — say, $1,000+. On a $2,000 invoice, that's $40 to get paid 20 days sooner. Much cheaper than a line of credit or the cost of chasing late payments.
For small invoices, discounts eat too much margin. Skip them and use short terms instead.
How to change payment terms without losing customers
If you've been on net 30 and want to move to due on receipt, communicate the change ahead of time. A one-line note on the invoice ('New terms starting Jan 1: due on receipt') and a short email to major customers is enough.
Most customers won't push back — payment terms are rarely negotiated actively. But the customers who do push back are exactly the ones you should be firm with; they're the ones stretching your DSO.
Setting due dates in Glo Invoice
Glo Invoice defaults to whatever term you set per-customer or across the business. Change the default once and every future invoice uses it. Individual invoices can override, and the customer sees the exact due date on the invoice — no math required.