Common payment terms
| Term | Meaning | Due date for an invoice dated 1 March |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | 1 March |
| Net 7 / Net 14 | Pay within 7 or 14 days of the invoice date | 8 March / 15 March |
| Net 30 | Pay within 30 days of the invoice date | 31 March |
| Net 60 | Pay within 60 days of the invoice date | 30 April |
| EOM | Pay by the end of the month the invoice is dated | 31 March |
| Net 30 EOM | Pay within 30 days after the end of the month | 30 April |
| 2/10 Net 30 | Take a 2% discount if paid within 10 days; otherwise pay in full within 30 | 11 March with discount, 31 March in full |
| 50% upfront | Half before work starts, the rest on completion | Two invoices |
Write the term in words as well as the code; not every customer knows what EOM means. BillCrisp prints the due date you set, so make sure the term and the date agree.
Choosing terms
- Shorter terms improve cash flow, but large customers often have fixed payment runs and will pay on their own schedule; ask before you invoice.
- Agree the terms in your quote or contract. Terms that first appear on the invoice are easy to dispute.
- An early-payment discount costs you money; offer it only if faster payment is worth the discount.
- For new customers or large orders, a deposit reduces your risk. Record it in Amount paid on the final invoice.
Late payment rules in the UK
For business-to-business sales in the UK, a payment date you agree must usually be within 60 days, or 30 days when the customer is a public authority. If no date was agreed, payment is late 30 days after the customer receives the invoice or the goods or services, whichever is later. [1]
You can then claim statutory interest of 8% plus the Bank of England base rate, unless your contract sets a different rate, and a fixed sum for debt recovery costs: £40 for debts under £1,000, £70 up to £9,999.99, and £100 for £10,000 or more. [2] [3] Other countries have their own rules; the EU has a late payment directive that member states implement in national law.
Putting terms on a BillCrisp invoice
- Set the Due date. New invoices default to 14 days after the issue date.
- Write the terms in Terms, for example "Net 30. Statutory late payment interest applies."
- Add Payment details so the customer knows exactly how to pay.
Make a free invoice, or read about invoice numbering.
Sources
- [1] GOV.UK: Late commercial payments: charging interest and debt recovery (accessed 2026-10-02)
- [2] GOV.UK: Interest on late commercial payments (accessed 2026-10-02)
- [3] GOV.UK: Claim debt recovery costs on late payments (accessed 2026-10-02)