Payment terms are one line on the invoice, and they set the pace of your cash flow. The two you will use most are due on receipt and net 30.
Due on receipt: for homeowners
Due on receipt means pay now. It fits residential work, where the customer is present when you finish and can pay by card before you leave. There is no reason to give a homeowner a month to pay for a water heater.
Net 30: for businesses
Net 30 means payment is due 30 days after the invoice date. Property managers, general contractors, and commercial clients often require it because they pay bills in batches. Accept it when you have to, but put the due date on the invoice as an actual date, not just the words net 30.
Make the due date impossible to miss
- Print the exact due date near the total.
- Include a pay link so paying takes seconds.
- Send a reminder a few days before and the day after the due date.
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