1. Standard Invoice Payment Term Definitions
Due Upon Receipt (PIA / COD)
Payment is required immediately when the invoice is delivered. Best for initial client deposits, custom design work, and retail orders.
Net 15 Days
The client has 15 calendar days from the invoice issuance date to submit full payment. Ideal for small agency retainer work.
Net 30 Days (Industry Standard)
The corporate standard in North America and Europe. Allows accounting departments 30 days to process Accounts Payable vouchers.
Net 60 / Net 90 Days
Extended credit terms requested by enterprise corporations. Always stipulate late interest fees when accepting Net 60+ terms.
2. How Early Payment Discounts Work (e.g. 2/10 Net 30)
Offering an early payment discount gives clients a financial incentive to settle invoices within 10 days rather than waiting 30 days.
If a client pays within 10 days, they receive a 2% discount on the invoice total. Otherwise, full net amount is due in 30 days.
3. Enforcing Terms & Calculating Overdue Penalties
If payment terms are breached, use Vicaksha's Overdue Interest Calculator to compute contractual late interest fees and generate a firm legal follow-up notice.