Due on Receipt

Due on Receipt means payment is expected immediately when the buyer receives the invoice, with no formal grace period, used most often for deposits, small recurring fees, and short-cycle supplier-buyer relationships.

Applies in: Global

Due on Receipt is the shortest payment term in common use. The intent is "pay this now," with no Net X runway. In practice, it almost always still takes a few days, because even a willing buyer has to process the invoice through whatever payment workflow they use. But the framing matters: it signals urgency and removes the implicit one-month grace period a Net term carries.

The right cases are narrow. Deposits and retainers paid in advance of work are a natural fit (no work starts until the deposit lands). Recurring small fees that the buyer trusts and pays automatically are another. So is anything where the supplier and buyer have a high-trust relationship and same-day payment is normal: friend-of-a-friend freelance work, family-run B2B suppliers.

The wrong cases are anything that goes through an AP team. A corporate buyer's AP system has its own queue and runs on its own cadence. Marking an invoice Due on Receipt does not skip the queue; it just sends a friendly signal that you would like it processed quickly. For institutional buyers, Net 15 or Net 30 is more honest and avoids the cycle of polite chases.

Common questions about Due on Receipt

Is Due on Receipt actually same-day?

Almost never, in practice. Even a buyer paying within minutes has to open the invoice, log into their bank, and execute a transfer. Realistic Due on Receipt payment lands in one to seven days, with the median around three. If you genuinely need same-day, ask for payment before issuing the invoice (deposit, prepayment), not after.

When should I use Due on Receipt?

Deposits, retainers paid in advance, and small recurring fees where the buyer pays automatically. Avoid it for invoices that have to go through a corporate AP team: the buyer's processing cycle does not care what the invoice says, and Due on Receipt just sets you up to chase. Use Net 15 or Net 30 for those.

Can I pair Due on Receipt with a deposit request?

Yes. The cleanest pattern is to issue a proforma invoice or deposit-request invoice marked Due on Receipt for the deposit, then issue a follow-up invoice on standard Net 30 or Net 15 terms for the balance once work completes. The deposit invoice gates the work; the balance invoice runs on whatever the standard relationship cadence is.

Use JupiterInvoice for Due on Receipt

Due on Receipt on a JupiterInvoice invoice is a field, a label, and an audit trail your buyer can act on without an email back-and-forth.

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Related terms

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