Payment terms

Payment terms

Payment terms are the agreed conditions for when and how a buyer will pay an invoice, including the due date (typically expressed as Net X), accepted payment methods, late-payment penalties, and any early-payment discounts.

Applies in: Global

Payment terms are the entire package of when-and-how. The most visible piece is the due-date shorthand: Net 30, Net 15, Due on Receipt, 2/10 Net 30. But the full set also covers what methods you accept (bank transfer, card, ACH, wire), what currency, what late fee applies if the buyer misses the deadline, and any conditions around partial payments or deposits.

The right place to state them is on the invoice itself, not just in the contract. AP teams pay against the invoice they see, not against the master agreement filed somewhere else. A clear payment-terms footer ("Net 30 from invoice date. Bank transfer preferred. Late fee 1.5% per month on overdue balance.") removes a whole category of disputes before they start.

The terms have to be reasonable for the relationship to hold. Setting Net 7 with a 5% per-week late fee on a corporate buyer will not survive contact with their procurement team. Setting Net 60 on a small-business invoice will leave the supplier carrying months of uncollected receivables. The right terms are the ones both sides can actually live with, written down clearly enough that they survive when the original buyer-side contact leaves or the AP system swaps over.

Common questions about Payment terms

Where should I put payment terms on the invoice?
In the footer, immediately under the total. AP teams scan the invoice top-down for amount, date, and PO number; payment terms should be in the path of that scan. Avoid burying them in a 10-page contract attachment that no one in AP will open.
Are stated late fees enforceable?
Generally yes if the buyer accepted the terms (signed contract, agreed by paying earlier invoices on the same template). In the UK and EU, late-payment legislation sets a statutory minimum interest rate that applies even without a stated fee. In the US, enforceability depends on state law and whether the fee is reasonable relative to the loss caused by the delay. A standard 1.5% per month is widely treated as reasonable.
Can I change payment terms after sending the invoice?
Not unilaterally. The terms you stated when you sent the invoice are the contract. To change them you have to send a credit note voiding the original invoice and issue a new one with the new terms, with the buyer's agreement. Buyers will generally agree if the change is in their favour (longer terms, lower late fee); they will resist if it tightens what they signed up for.

Use JupiterInvoice for Payment terms

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

Net 30 payment terms, explained

Net 30 means the invoice is due 30 days from the issue date. Here's what it means in practice, when to use it, and what to do when clients p...

Invoice due date calculator

Free invoice due date calculator. Net 7, Net 15, Net 30, Net 60, Net 90, EOM, and custom terms. Skips weekends and US holidays.

Late fee calculator

Free late fee calculator for overdue invoices. Choose a flat fee, monthly percentage, or annual APR. State maximum rates included.

Related terms

Net 30 Net 15 Net 60 Due on Receipt Early-payment discount

Send an invoice that handles payment terms properly

Free. No signup. Tax labels, payment terms, and PO numbers are first-class fields, not workarounds.

Create an invoice

No signup required. Build now, save later.