5 min readInvoicing
Net 30 vs Due on Receipt: The Payment Terms Trick That Gets You Paid Faster
The wrong terms can quietly bankrupt a healthy business. Here’s how to choose terms that clients accept — and that protect your cash flow.
The simplest rule
Your terms should match your risk. New client? Short terms. Large project? Milestones. Corporate? Deposit + Net 30.
Due on Receipt
Best for: Small projects, new clients, freelancers
Fastest cash flow. Works best when you deliver quickly and your invoice is easy to approve.
Net 7 / Net 14
Best for: Most service businesses
A good balance: clients feel it’s fair, but you’re not funding their business for a month.
Net 30
Best for: Enterprise / corporate procurement
Common in bigger companies. Use deposits and milestones so Net 30 doesn’t destroy your cash flow.
Scripts you can copy (no awkwardness)
- ‘We invoice due on receipt for new clients, then we can move to Net 14 after the first month.’
- ‘We can do Net 30, but we require a 50% deposit to reserve capacity.’
- ‘For projects over 2 weeks we invoice milestones so you only approve smaller amounts at a time.’