Due on Receipt

When to use due on receipt

Use due on receipt for deposits, small jobs, final balances, or clients with a history of late payment. It sets immediate expectation without negotiating custom terms each time.

• Deposits and booking fees
• Small fixed-fee jobs
• Clients with late payment history

How to avoid confusion

Set the due date to the issue date, label the terms Due on receipt, and state in the email that payment is expected upon receiving the invoice. Confusion often happens when the due date is left blank.

• Label terms Due on receipt
• Set due date = issue date
• State expectation in the email

What to include with the invoice

Include payment method, reference text, and contact email. For deposits, note how the payment applies to the total project balance.

• Payment method and reference
• How deposit applies to total
• Contact for AP questions

Set an immediate term without creating surprise

Due on receipt is clear only when the client sees it before the bill arrives. Put the term in the quote, booking confirmation, or contract and explain what action the payment unlocks, such as reserving a date or releasing final files.

For a new client or a large balance, immediate payment may be difficult because their finance team has approval steps.

A deposit due on receipt combined with Net 15 for the final balance can protect cash flow without asking accounts payable to bypass its normal process.

Example follow-up schedule

If a $500 deposit invoice is issued Monday with payment due on receipt, send it to the agreed billing contact and confirm that it arrived. A short reminder on Wednesday can state that the project date is held once the deposit clears.

If it remains unpaid on Friday, ask whether vendor details or a purchase order are missing before changing the tone.

The invoice is technically overdue immediately, but a measured follow-up sequence is usually more productive than sending a final notice the next morning.