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Key takeaways
- Due on receipt means payment is expected immediately when the customer receives the invoice.
- It is ambiguous about timing, since the day of receipt, the time to process and the date of delivery can all differ.
- It suits small, simple jobs and consumers. Corporate buyers rarely pay on receipt.
- A clear date or a short net term, such as net 7, avoids disputes about when payment was late.
Free PDF and Excel: Choosing short payment terms: decision sheet. Get it below
What due on receipt means
Due on receipt is a payment term meaning the invoice is payable as soon as the customer receives it, with no extra credit period.
Some people write "due upon receipt", "payable on receipt" or "immediate". They all mean the same. The weak point is the word receipt. It could mean the date you sent the invoice, the date it reached an inbox, or the date the goods arrived.
A plumber emails an invoice on Friday evening marked due on receipt. The customer opens it on Monday and pays on Wednesday. The plumber calls it two days late. The customer says they paid on the second day.
A fixed date, or net 7, would have removed the argument.
Where it fits
- Consumer and retail jobs.
- One-off services for a new customer.
- Final invoices after work is complete and accepted.
- Deposits and retainers.
Free PDF and Excel
Choosing short payment terms: decision sheet
A short decision sheet to pick between due on receipt, net 7 and net 15, with wording you can paste.
- Decision table
- Wording options
- Customer fit list
- Excel tracker
Where it fails
- Corporate buyers, who run payments on fixed cycles.
- Invoices that need purchase order matching before approval.
- International customers with transfer delays.
- Any case where the customer disagrees about what was delivered.
Clearer options
| Instead of | Write | Why |
|---|---|---|
| Due on receipt | Due on 15 November 2026 | A fixed date leaves no room |
| Due on receipt | Net 7 | A clock starting at the invoice date |
| Due on receipt | Payable before dispatch | Pay in advance, see proforma invoice |
If you want a short but workable term, see net 15. For the full set, see payment terms.
- State the date the invoice is sent.
- Say what receipt means.
- Make payment easy.
- Accept that corporate buyers may not comply.
Last checked: 19 October 2026. General practice. Local law may set default payment periods.
Frequently asked questions
What does due on receipt mean?
The invoice is payable as soon as the customer receives it.
Is due on receipt the same as pay now?
In intent yes. In practice the customer needs time to open the invoice and arrange payment.
When is a due on receipt invoice late?
The term does not say. Use a fixed date or short net term to define it.
Do businesses pay on receipt?
Small ones often do. Larger ones pay on their own cycle.
Is due on receipt better than net 30?
It gets cash sooner and causes more friction. Pick by customer type.