Due on Receipt

What does Due on Receipt mean?

Due on Receipt means payment is expected as soon as the client receives the invoice—there's no grace period. It's the fastest payment term you can set, signaling that you expect immediate payment for the work completed.

In practice, "immediately" usually means within a day or two. Most clients understand some processing time is reasonable, but the expectation is clear: pay now, not later.

When to use Due on Receipt

This payment term works best for:

• Small, quick jobs — Service calls, minor repairs, or short consultations
• One-time clients — When you won't have an ongoing relationship
• Retail or direct consumer work — Residential jobs where payment on completion is standard
• High-risk situations — New clients or industries with poor payment histories
• COD (Cash on Delivery) — When you're handing over goods or finishing on-site work

Due on Receipt vs. Net terms

Due on Receipt prioritizes your cash flow and minimizes risk. Net 15 or Net 30 terms give clients flexibility, which can help win commercial work but means waiting longer for payment. For many contractors and service providers, Due on Receipt is the default—only offer extended terms when there's a good reason.

Making it work

To get paid quickly with Due on Receipt terms, make payment as easy as possible. Include a payment link directly in your invoice, accept multiple payment methods, and send the invoice while you're still top of mind—ideally right when the job is done. The faster you invoice, the faster you get paid.