Invoice Due Date
The date by which payment for an invoice is expected. It is typically specified in the invoice terms and conditions. Due date anchors payment terms, late-fee policies, and cash-flow planning, and signals professionalism to clients.
Due date is usually only applicable for manual payments forms like ACH, wire, etc. For automated payments collection like credit card payments, the due date is the date of the payment.
How To Set The Due Date
Common due dates used in invoicing:
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Due upon receipt
Payment is due immediately when the invoice is received. Best for small projects or clients with rapid turnarounds. -
Net 15
Payment is due within 15 days of the invoice date. A balanced choice for regular, lower-value work that still allows a brief payment window. -
Net 30
Payment is due within 30 days of the invoice date. The most common B2B term, offering clients a full month to manage expenses and pay. -
Net 60
Payment is due within 60 days of the invoice date. Often used with larger clients or higher-value contracts that can tolerate a longer payment cycle. -
Net 90
Payment is due within 90 days of the invoice date. Rarely used outside large-scale industries (e.g., manufacturing) where extended billing cycles are standard.
How Businesses Use Due Dates
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Cash-flow management
Businesses choose shorter terms (Net 15, Due upon receipt) when they need rapid inflows, or longer terms (Net 60, Net 90) when they can afford to wait and want to offer flexibility to large clients. -
Aligning with client pay cycles
By matching due dates to a client's payroll or accounting cycle, vendors increase the likelihood of on-time payment and reduce administrative friction. -
Incentivizing early payment
Offering discounts for early settlement (e.g., Net 30) rewards prompt payers, accelerates receivables, and can reduce reliance on external financing. -
Enforcing discipline and professionalism
Clearly stated due dates set expectations, minimize disputes, and provide a contractual basis for late-fee policies or collection actions if invoices go unpaid. -
Customizing for project structure
For multi-phase or milestone-driven work, vendors may tie due dates to deliverables, ensuring payment aligns with project progress and reducing risk. -
Automated reminders and late fees
Invoice systems often send automated n