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hi this is tim yoder with fit small business ive been a cpa for 25 years and today im going to teach you about common invoice payment terms so an invoice payment term appears on an invoice and it clearly establishes two things the first is when is that payment due and the second is there any discount for paying the invoice early so five common invoice terms you should know the first is payment in advance now here the customer is expected to pay the invoice prior to the service being provided so a common instance of this could be a construction firm requiring a 50 percent prepayment to help pay for materials prior to the job being started a second common term is due upon receipt and so here the customer is expected to pay the invoice immediately now in reality do upon receipt does not work very well at all the problem being is that companies generally dont pay bills on a daily basis so they receive the invoice theyre going to put it into the approval process that could take a few d