Due on receipt means the client owes payment as soon as they receive your invoice. There is no 15- or 30-day grace period. It is the fastest standard payment term available and one of the most effective ways for freelancers to maintain healthy cash flow.
How it works
When you mark an invoice as “due on receipt,” you are telling the client that payment is expected immediately. In practice, most clients pay within one to three business days. The term does not mean the client must pay the second they open the email, but there is no built-in waiting period.
You include “Due on receipt” in the payment terms section of your invoice, usually near the total amount. If you also have a late fee policy, state it on the same invoice so the client knows the consequence of delay.
Due on receipt works best with online payment methods. When you send an invoice with a credit card or bank transfer link, the client can pay in under a minute. Removing friction from the payment process is just as important as setting the right terms.
Compare this to net 30, where the client has a full month to pay. Most freelance clients, especially small businesses and individual decision-makers, can pay immediately. There is no reason to give them 30 days.
Why it matters for freelancers
Cash flow timing is everything when you are self-employed. If you complete three projects in a month, all on net 30 terms, you could be sitting on $15,000 in outstanding invoices while still needing to cover rent and taxes this week.
Due on receipt shrinks the gap between finishing work and receiving payment. It also sets a psychological expectation. When a client sees “net 30,” they file your invoice as something to deal with later. When they see “due on receipt,” they process it now.
Shorter payment terms lead to faster payments. Invoices marked due on receipt get paid an average of two weeks faster than net 30 invoices.
For a broader look at structuring your terms, read our payment terms guide for freelancers.
Example
You finish a $2,500 copywriting project on a Wednesday afternoon. You send the invoice that evening:
Amount due: $2,500 Payment terms: Due on receipt Payment method: Credit card or bank transfer (link below) Late fee: 1.5% per month on balances unpaid after 7 days
The client sees the invoice Thursday morning, clicks the payment link, and pays by credit card. You have the money by Friday. Total time from delivery to payment: about 36 hours.
Compare that to net 30. Same project, same client, but the client files the invoice and pays 26 days later. Same work, nearly a month longer to see the money.
Common mistakes
Not including a payment link. If the client has to figure out how to wire you money, you have undermined the urgency. Always include a one-click payment option.
Using due on receipt with enterprise clients. Large companies with procurement departments cannot pay the same day. For those clients, use net 15 or net 30. Save due on receipt for small businesses and individual clients.
Failing to follow up. Clients get busy. If you have not received payment within 3 business days, send a friendly reminder. For a proven sequence, see our invoice follow-up email templates.
Not combining it with a deposit. Due on receipt works best as the term for your final invoice when you have already collected a deposit upfront. The deposit secures your commitment at the start, and due on receipt ensures fast payment at the finish.
FAQ
Is due on receipt legally enforceable? Yes. When a client agrees to your payment terms by signing a contract or accepting a proposal, those terms are part of the agreement. If they do not pay, your written terms give you standing to charge late fees and pursue the balance in small claims court. For more on handling non-payment, read our guide on what to do when a client will not pay.
When should I use due on receipt versus net 15? Use due on receipt for projects under $5,000, one-time clients, and final milestone payments. Use net 15 for ongoing relationships where the client has a consistent payment history and needs a few days to process invoices.
How do I present due on receipt without sounding aggressive? Just include it on your invoice and proposal. Most clients will not question it any more than they would “net 30.” If asked, you can say “I keep my terms simple so we can both move forward quickly once the work is done.” GetPaidFirst sets due on receipt as the default payment term on invoices, making it easy to maintain fast payment cycles across all your clients.