What Does Due on Receipt Mean?
A payment term for invoices that are payable as soon as they arrive
How it differs from Net terms
With Net 30, the customer has 30 days from the invoice date to pay. With due on receipt there is no built-in grace period: payment is expected straight away. The Net 30 page explains the longer terms.
How it works in practice
A customer still needs a little time to process a payment. Some treat due on receipt as "pay now", others allow a few days. If you need a firm date, write it on the invoice.
When it suits, and when it causes friction
It suits one-off jobs, new clients, small amounts and goods released on delivery.
It can cause friction with larger clients, who often run payments on their own approval cycle and may not be able to pay on the day an invoice arrives.
How to write it on an invoice
Put "Payment terms: Due on receipt" in the terms section, alongside your bank details or payment link. Many people add a date as well, for example "Due on receipt, no later than 15 November", to avoid any argument.
Late fees
A late fee only makes sense if it is in the terms the customer agreed to. With due on receipt it is worth stating from which date it applies.
Domande Frequenti
Is due on receipt the same as paying immediately?
Not exactly. It means payment is expected on receipt of the invoice, but in practice customers often need a short time to process it. Add a date if you need certainty.
What is the difference between due on receipt and Net 30?
Net 30 gives the customer 30 days from the invoice date. Due on receipt expects payment as soon as the invoice arrives.
When does an invoice become overdue under due on receipt?
That depends on what your terms say. Because the due date is the date of receipt, many businesses state an explicit date to avoid disagreement over when a late fee starts.
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