Invoice payment terms state when payment is due, how to pay, and which reference to use. For example, Net 30 means 30 days from the starting point agreed with your customer; show the exact due date on the invoice too.

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If you’ve seen “Net 7” or “Net 30” on an invoice and wondered what it means, the number is the key. It tells you how many days the customer has to pay after the agreed starting point. So Net 7 means seven days, Net 14 means fourteen, and the same idea applies to Net 30 or Net 60.

But the label alone can leave room for confusion. Does the count start on the invoice date? Are those calendar days or business days? Agree on those details with your customer, then put the exact due date on the invoice. The examples in this guide use calendar days from the invoice date, including weekends and public holidays.

Not every job needs a “Net” term. For a small job, you might agree that payment is due when the customer receives the invoice. If you have costs before work begins, you might ask for a deposit. And for a longer project, you could agree on payments at specific milestones, such as project start, approval of a deliverable, and final delivery. The customer should always know how much is due, and when.

Which arrangement should you choose? Think about how long your business can wait for payment and how long your customer realistically needs to approve it. Discuss the price, payment schedule, and any purchase order requirements before work starts. Your invoice should reflect that agreement.

Here’s a quick example of why an exact date helps. If you issue an invoice on the fourteenth of October and agree on Net 14, using calendar days from the invoice date, payment is due on the twenty-eighth of October. Writing that date on the invoice is clearer than making the customer calculate it.

If a deposit has already been paid, check your records before invoicing for the balance. And if an invoice becomes overdue, first check whether payment has arrived or whether the invoice reached the right person. Then send a polite reminder with the invoice number, amount, due date, and payment details. Check whether an approval or correction is holding things up.

For South African invoices, make the currency, invoice date, due date, and payment reference clear. If you’re a VAT vendor, check the separate SARS tax-invoice requirements. Before adding any late-payment fees or interest, check your agreement and get advice that applies to your situation.

You don’t need to remember or write all this from scratch. On the page accompanying this audio, you can compare the common terms, find wording to copy for the arrangement you’ve agreed, and use the due-date calculator. Choose the part that fits your invoice, then check that its wording, due date, amount, and payment details all agree before you send it.

What are invoice payment terms?

Invoice payment terms tell your customer when payment is due, how to pay, and which reference to use. Common examples include due on receipt, Net 7, Net 14 and Net 30. Agree the terms before sending the invoice, then show both the wording and an exact due date so there is no guesswork.

Before work starts, clarify the price, when you will invoice, the payment deadline and any deposit or staged payments. Check whether the customer needs a purchase order or a particular billing contact. A clear invoice should follow the arrangement you have actually agreed.

Avoid adding unfamiliar fees or different deadlines only when you send the invoice. If the scope or schedule changes, discuss the change and keep a record of the agreed update. These are practical communication steps, not a statement about what a contract must contain in every country.

What are the most common invoice payment terms?

“Net” is the number of days allowed for payment after the agreed starting point. The examples below count calendar days from the invoice date. Deposits and milestones use agreed stages instead.

Common invoice payment terms compared
TermWhen dueUseful when
Due on ReceiptWhen the invoice is receivedSmall jobs or agreed immediate payment
Net 77 calendar days after the invoice dateShort projects and regular clients
Net 1414 calendar days after the invoice dateA little time for customer approval
Net 3030 calendar days after the invoice dateEstablished business customers
Net 6060 calendar days after the invoice dateOnly when cash flow supports the wait
50% Deposit UpfrontHalf before work; balance at the agreed stageWork with meaningful upfront costs
Milestone-Based PaymentsAt defined stages of the projectLonger projects with clear deliverables

Agree the timing and starting point with your customer. Put the exact due date on the invoice, especially when a label alone could be interpreted differently.

Net 7 example: An invoice dated 14 October 2026 is due on 21 October 2026 when the agreed term is seven calendar days from the invoice date. Suggested wording: “Payment due by 21 October 2026. Please use the invoice number as your reference.”

Net 30 example: For the same invoice date, 30 calendar days gives a due date of 13 November 2026. Suggested wording: “Payment due by 13 November 2026. Please use the invoice number as your reference.”

Fictional invoice dated 14 October 2026 with Net 14 terms and a due date of 28 October 2026
Fictional example: Net 14 from an agreed 14 October invoice date leads to a 28 October due date when counting calendar days.

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Payment terms you can copy into an invoice

Use these clauses as a starting point. Replace the timing or milestone percentages to match the arrangement you have agreed. Each clause includes a payment reference; add your actual payment instructions separately.

  • Due on Receipt

    Payment is due on receipt of this invoice. Please use the invoice number as your payment reference.

  • Net 7

    Payment is due within 7 calendar days of the invoice date. Please use the invoice number as your payment reference.

  • Net 14

    Payment is due within 14 calendar days of the invoice date. Please use the invoice number as your payment reference.

  • Net 30

    Payment is due within 30 calendar days of the invoice date. Please use the invoice number as your payment reference.

  • Net 60

    Payment is due within 60 calendar days of the invoice date. Please use the invoice number as your payment reference.

  • 50% Deposit Upfront

    A 50% deposit is due before work begins. The remaining 50% is due upon delivery, as agreed. Each invoice will show the amount due for its stage.

  • Milestone-Based Payments

    Payment is due at the agreed milestones: 30% on project start, 40% on approval of the first deliverable, and 30% on final delivery. Each stage will be invoiced separately.

  • Early Payment Discount

    A 2% discount applies if payment is received within 10 calendar days of the invoice date. Otherwise, the full amount is due within 30 calendar days of the invoice date.

Invoice due-date calculator

Choose an invoice date and a term to see the deadline immediately. The calculator counts calendar days from the invoice date, including weekends and public holidays.

Payment due

Choose an invoice date

This assumes the term begins on the invoice date. For a different agreed starting point or business-day terms, calculate the deadline separately.

A term such as Net 14 is easier to act on when the invoice also shows a specific due date. Check the starting date and counting convention agreed with your customer; do not assume that every business interprets a short label the same way.

Fictional worked example — calendar days

Example Studio and Sample Client agree that an invoice issued on 14 October 2026 is due 14 calendar days after the issue date. The invoice is R2,000.00, with no tax in this illustration. Its due date is 28 October 2026. Suggested wording: “Please pay R2,000.00 by 28 October 2026 using reference EXAMPLE-001.” This is an illustration, not a recommended deadline for every customer.

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How should you choose payment terms?

Choose a deadline that balances your cash flow with the customer’s approval process. Confirm it before work starts, especially for a new client or a large project.

  • Small, one-off jobs: due on receipt or Net 7 can keep the collection cycle short when agreed upfront.
  • Regular clients: Net 14 or Net 30 gives time for internal approval; check that your cash flow can cover the wait.
  • Work with upfront costs: an agreed deposit can cover part of the work before it begins.
  • Long projects: use milestones tied to clear deliverables and show each stage’s amount.
  • Net 60: use only if the commercial relationship and your cash flow support that period.

Do not label an amount paid simply because a deposit was requested. Reconcile actual receipts and the remaining balance. If you are unsure how to document deposits or tax, ask a qualified adviser about your circumstances.

Fictional staged-payment example

A project price is R4,000.00. The parties agree to request R2,000.00 before work and R2,000.00 at delivery. A deposit request should identify the stage and amount it requests. When preparing the balance invoice, reconcile the earlier payment in your records so that the customer is not asked to pay it twice.

Payment terms in South Africa

For South African customers, state the agreed payment period, currency, invoice date, exact due date, and payment reference. Avoid assuming that a label such as “Net 30” sets a universal legal deadline.

If you are a VAT vendor, check the separate tax-invoice requirements published by SARS. Its guidance covers details such as invoice date, serial number, supplier and recipient information, and tax amounts. A payment term does not replace those requirements. SARS also explains VAT vendors’ record-keeping duties, including retaining tax invoices and supporting documents.

For late-payment interest or fees, check your contract and the law that applies to the transaction. This guide does not set a universal rate or claim that every invoice is covered by the same credit rules.

What should you do when an invoice is overdue?

Start with a factual check, then a clear reminder. The goal is to resolve a missed or disputed payment while keeping a record of what happened.

  1. Check your bank records and confirm the invoice reached the correct billing contact.
  2. Send a polite reminder stating the invoice number, amount, due date, and payment details.
  3. Ask whether a purchase order, correction, or other approval is blocking payment.
  4. If the invoice remains unpaid, follow the escalation route in your agreement and seek qualified advice before adding fees or interest.

After the deadline, start by checking your records and whether the right person received the invoice. A polite factual reminder can repeat the reference, amount and due date. Late-payment fees, interest, collection procedures and legal rights require jurisdiction-specific advice; no universal rule is claimed here.

Before you send

  • Does this document follow the agreed payment arrangement?
  • Do the written term and exact due date agree?
  • Is the requested amount distinct from any earlier deposit or payment?
  • Are the payment details and reference correct?
  • Have you checked the PDF and kept an appropriate copy?

Create an invoice with Wazi

In Wazi’s free invoice builder, select Invoice and enter the agreed terms. Check the due-date field separately, then review the amount, currency, reference and payment details in Preview before downloading the PDF.

In the free builder, choose Invoice, Quote or Estimate Quote to match the document you need. Enter your own business and customer details. Select the payment terms and independently check the due-date field; changing a term is not a promise that every date or staged-payment calculation will update automatically.

Review the amount, currency, payment reference and bank details in Preview, then choose Download PDF. Guests can upload a logo, and their PDFs carry Wazi attribution; a free account allows branding removal and saved documents. The PDF is a document, not a payment processor or a confirmation that the customer has paid.

You can also read about invoices versus quotes and invoice numbering.

Frequently asked questions

What does Net 30 mean on an invoice?

Net 30 requests payment 30 days after the agreed starting date. In the examples on this page, that is the invoice date and the days are calendar days. Show the exact due date too.

Are invoice payment terms legally fixed in South Africa?

There is no single payment period suitable for every South African invoice. Agree the period with your customer and make the invoice date and due date explicit. Check any contract and applicable rules for your transaction.

Do weekends count in Net 7 or Net 30?

The examples and calculator here count calendar days, including weekends and public holidays. If you agreed business days instead, say so explicitly and calculate the date separately.

Can I ask for a deposit before starting work?

Yes, you can propose an upfront deposit as part of the agreement. State the amount, when it is due, what triggers the balance, and how a paid deposit will be reflected in your records.

What should I do when an invoice is overdue?

Check whether it was received and whether payment has already arrived. Then send a polite reminder with the invoice number, amount and due date. Escalate according to your agreement and seek advice before applying fees or interest.

Sources and scope

About this guide: Wazi Tools builds the free invoice and quote builder linked on this page. We prepared these fictional examples to explain common payment wording and checked the sources below on 20 October 2026. This is practical guidance, not legal or tax advice; requirements depend on the transaction and your circumstances.

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