Why the due date is not optional
If an invoice has no due date, most jurisdictions default to either 30 days from receipt or 'on demand', depending on the local statute. That means in a dispute you may have a much weaker claim to interest or escalation than you think.
Always set an explicit due date. It removes ambiguity and gives you a defensible position if the customer pays late.
How payment terms map to due dates
'Net 30' means the full amount is due 30 calendar days after the invoice date. 'Net 14', 'Net 7', and 'Due on receipt' work the same way with shorter windows. Avoid mixing terms — for example, 'Due on receipt, Net 30' makes no sense and stalls the invoice in accounts payable.
Some businesses use 'EOM' (end of month) terms — for example, 'Net 30 EOM' means due 30 days after the end of the month in which the invoice was issued. This is convenient for the buyer but extends your cashflow gap.
When an invoice becomes overdue
An invoice is overdue the day after the stated due date. From that point you can usually:
- Send a follow-up reminder without it feeling pushy.
- Apply any late fee disclosed on the original invoice.
- Begin charging statutory interest, if your jurisdiction allows it.
- After a longer period, escalate to formal collections or small claims.
Practical defaults for SMBs
For new customers, default to shorter terms (Net 7 or Net 14) until you trust the relationship. For repeat customers in good standing, Net 30 is reasonable. Reserve Net 60 and longer for strategic accounts where the cashflow trade-off is worth it.