Due on Receipt
Due on Receipt means payment is expected as soon as the customer receives the invoice.
Due on Receipt asks for immediate payment — there is no grace period built into the terms. In practice, it usually means payment within a few days of receiving the invoice, since instant payment is rarely literal. It is common for small jobs, point-of-sale transactions, and first-time customers.
Example
A plumber emails an invoice marked Due on Receipt after finishing a repair; the homeowner pays the same day.
Related terms
Frequently asked questions
Does Due on Receipt mean the customer must pay instantly?
Not literally — it means no credit period is granted. Courts and common practice treat it as payment expected promptly, typically within a few days. If you need a hard deadline, use Net 7 or Net 15 instead.
When is Due on Receipt appropriate?
For small amounts, one-off jobs, new customers with no credit history, or any sale where extending credit makes no sense. For ongoing B2B relationships, Net terms are usually more practical.
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