Common payment terms explained
| Terms | Meaning | Invoice dated 10 March is due |
|---|---|---|
| Due on receipt | Payable immediately | 10 March |
| Net 7 | 7 days after the invoice date | 17 March |
| Net 14 | 14 days after the invoice date | 24 March |
| Net 30 | 30 days after the invoice date | 9 April |
| EOM | The last day of the invoice month | 31 March |
| 30 days EOM | 30 days after the end of the invoice month | 30 April |
How long can payment terms be in the UK?
Between businesses, terms over 60 days are only valid if expressly agreed and not grossly unfair to the supplier. Public bodies must pay within 30 days. If no terms were agreed at all, payment is due 30 days after the customer received the invoice or the goods/services, whichever is later.
A Bill before Parliament in 2026 (the Commercial Payments Bill) would set a hard 60-day maximum for most business contracts, no earlier than 2027. It is not law yet.
Shorter terms get you paid sooner. Most freelancers use 7 or 14 days — and put the terms in writing with a late payment clause.