Invoice Payment Terms: A Full Reference (2/10, EOM, COD, and More)
Every invoice payment term explained: Net 30, 2/10 Net 30, EOM, COD, CIA, and more. Learn what each abbreviation means and when to use it.
The core terms: Net X
Net 7, Net 14, Net 30, Net 45, Net 60, and Net 90 all follow the same rule: payment due X days after the invoice date. Net 30 is the informal industry default; Net 60 and Net 90 are common in enterprise procurement and rare among smaller businesses.
Early payment discount terms: 2/10 Net 30
Read as 'two ten, net thirty': 2% discount if paid within 10 days, otherwise the full balance is due in 30 days. Variants include 1/10 Net 30, 3/15 Net 45. The discount only makes sense on invoices large enough that the 1–3% saves the client meaningful money.
EOM and MFI: month-based terms
'EOM' means End of Month — payment due at the end of the month the invoice was issued. 'Net 30 EOM' means 30 days after the end of the invoice month. 'MFI' means 'of the Month Following Invoice' — e.g. '15 MFI' means the 15th of the month after the invoice was issued. Both are common in European contracts.
Upfront terms: CIA, COD, and PIA
CIA (Cash In Advance) requires payment before work begins. COD (Cash On Delivery) requires payment at delivery. PIA (Payment In Advance) is a partial-payment version, often 50% up front and 50% on completion. Use these with new clients or high-risk projects.
Which term to pick for your business
Start with Net 14 for services and Net 30 for goods. Move to Due on Receipt for repeat clients and low-value work. Reserve Net 60 for large procurement-heavy clients where the term is non-negotiable. Never quietly change terms mid-relationship; renegotiate them at contract renewal.
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