Invoice payment terms explained (7, 14, 30 days and EOM)
Payment terms tell customers when an invoice is due. Common terms in Australia are 7, 14 or 30 days from the invoice date, or 30 days end of month (EOM). Shorter terms and clear reminders usually mean faster payment.
Common terms
7 days: due a week after the invoice date. Common for trades and one off jobs.
14 days: a popular middle ground for small businesses.
30 days: standard for many business to business accounts.
30 days EOM: due 30 days after the end of the month the invoice was issued, so it can be up to 60 days.
Choosing terms
Pick the shortest terms your customers will accept. For homeowners, 7 days or payment on completion is normal. For businesses, 14 or 30 days.
Make the due date obvious
Show the actual due date on the invoice, not just "30 days". It removes any doubt.
Terms only work if you follow up
Most late payment is simply nobody following up. A reminder on the due date and a nudge a few days later make the biggest difference.
Questions people ask
- What does 30 days EOM mean?
- The invoice is due 30 days after the end of the month it was issued, so it can be up to 60 days.
- What payment terms should a small business use?
- The shortest your customers will accept. 7 days is common for homeowners and one off jobs, 14 or 30 days for businesses.
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