Your invoice payment terms and conditions can impact the number of days it takes you to get paid. Without them, you aren't communicating when a payment is expected, as well as other conditions like your preferred payment method and any consequences of late payments.
This list explains the payment terms most commonly used on invoices.
| Net monthly account | Payment due on last day of the month following the one in which the invoice is dated |
|---|---|
| PIA | Payment in advance |
| Net 7 | Payment seven days after invoice date (Default) |
| Net 10 | Payment ten days after invoice date |
| Net 30 | Payment 30 days after invoice date |
| Net 60 | Payment 60 days after invoice date |
| Net 90 | Payment 90 days after invoice date |
| EOM | End of month |
| 21 MFI | 21st of the month following invoice date |
| 1% 10 Net 30 | 1% discount if payment received within ten days otherwise payment 30 days after invoice date |
| COD | Cash on delivery |
| Cash account | Account conducted on a cash basis, no credit |
| Letter of credit | A documentary credit confirmed by a bank, often used for export |
| Bill of exchange | A promise to pay at a later date, usually supported by a bank |
| CND | Cash next delivery |
| CBS | Cash before shipment |
| CIA | Cash in advance |
| CWO | Cash with order |
| 1MD | Monthly credit payment of a full month's supply |
| 2MD | As above plus an extra calendar month |
| Contra | Payment from the customer offset against the value of supplies purchased from the customer |
| Stage payment | Payment of agreed amounts at stage |