'Due date' on an invoice sounds simple, but the shorthand ('net 30', '2/10 net 30') means different things to different customers. Understanding the language — and picking the right terms for your business — directly affects how fast you get paid.
The common payment terms. The most common due-date shorthand:
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.
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.
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.
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.
Frequently asked questions
Does the due date count business days or calendar days?
Calendar days, unless you specifically write 'business days' in your terms. 'Net 7' means 7 calendar days from the invoice date.
What happens if the due date is a weekend or holiday?
Payment is typically considered on time if received by end of the next business day. Most invoicing apps auto-adjust weekend due dates to the following Monday.
Can I charge interest on overdue invoices?
Yes, if it's on the invoice at the time of sending. 1.5% per month is standard and safe in most states.
