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What is Due on receipt?

Due on receipt means the invoice is payable immediately — as soon as the customer receives it. It's typical for small, one-off jobs, retail-style services, and new clients with no payment history. In practice, expect payment within a day or two, not literally the same minute.

In practice

A mobile mechanic completes a $180 brake-pad job and hands the customer an invoice marked 'due on receipt.' The customer pays by card on the spot, and there's no receivable to chase.

Related terms

  • Net 30 — Payment due in full 30 days after the invoice date.
  • Payment terms — The agreed rules for when and how an invoice must be paid.
  • Late fee — A penalty charged when an invoice is paid after its due date.

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Frequently asked questions

Does 'due on receipt' mean the same day?

Reasonably, yes — within a day or two. Courts and common practice treat it as 'promptly,' not 'this exact minute.'

When should I use due on receipt instead of net 30?

Small jobs, first-time clients, and any work where you collect payment in person. Save net terms for established relationships.

Can I still charge a late fee on due-on-receipt invoices?

Yes, if your terms state one — e.g., a fee after 7 days. State it on the invoice before the work, not after.