Are you running a small business or working as a freelancer? Then nobody understands better than you the pain of not getting paid on time for products or services already delivered. Business owners like you has to understand the benefits of having online invoicing software.  

When we say contractor or freelancer or consultant, the main issue with their payroll is that they are not timely paid. The reason for which is obvious; either the invoice hasn’t been sent on time or it lacks professionalism. This is why we are here to help you understand due upon receipt meaning and a perfect method for invoice payment terms

Some clients might take weeks before your payment is credited to the account. Freelancers usually have to deal with many projects, but they are all individual projects and require a one-time client only for one-time job work. 

In such a view, waiting for a longer period for the payment can be frustrating, especially when your bills are piling up and you need to know when the money is coming in. This is where you need a free invoice generator app to keep the late payment hassles away.

The best possible way to avoid such a situation is by setting up payment terms and conditions before starting the project. The one thing that can ensure quick payment is labelling your invoices with ‘Due on Receipt.’ You might have seen such a label on sample invoices, or possibly if you never heard of this invoicing term, then let us walk you through the easy guide on ‘due on receipt’ with our invoice maker app blog!

The ‘Due Upon Receipt’ method

One of the most common methods of receiving payment right after sending an invoice is called as due upon receipt method. Let’s talk about the payment due upon receipt invoice terms in detail. 

What does ‘Due Upon Receipt’ mean?

The term ‘Due Upon Receipt’ meaning comes outrightly and explains that the payment is due as soon as the client receives the invoice.

Placing this invoicing term indicates that your clients are ready and make payment as soon as possible. Of course, in this age of online payment gateway or digital payment options available, this could also sometimes happen on the same day. However, usually as per the term, clients have to pay you by the next business day.

And for the same, you need to create and share a professional invoice mentioning the upon receipt meaning clearly in the invoice. 

The term ‘Due Upon Receipt’ comes outrightly and explains the meaning, i.e., that the payment is due as soon as the client receives the invoice.


What does ‘Due Upon Receipt’ mean

When to use or mark your invoices with ‘Due Upon Receipt’?

It sounds like a great move and starts putting ‘due on receipt’ on every invoice to get you paid fast enough. But this invoicing term is not to be used for every job. It works best if you have a new client and requires only one-time job work done from you, such as a website or mobile app content, designing a logo, etc. or if you can sense that the client is not interested in repeat business.

No one will stop you from putting this term on every invoice, but it doesn’t seem feasible to let you know and remind you about your payment terms again and again with your regular clients. For sure, the upon receipt meaning doesn’t work for regular clients for whom you are working for years.
So, the payment due upon receipt invoice terms is only meant for new or one-time or short-term clients from whom you don’t wish to have payment related delays or risks.

Advantages of using the term ‘Due Upon Receipt’:

Advantages of using the term ‘Due Upon Receipt’

The obvious benefit of using due on the receipt is the assurance of getting paid fast for the work done. You can expect the payment to be in your bank account by the next business day and, in certain situations, on the same day also if the client’s making online payment for the services.

The other advantage of using this invoicing term of our free invoice generator app is that you might forget about an invoice or two with regular work and invoices lined up for the payments. The receipt method ensures that you do not bear the brunt of losing the money and prevents a few hiccups in your accounting books. 

This happens because some clients could take up to weeks and, in the worst case, months to pay you, which surges the gap tending you to forget about the invoice you sent in the first place. This frequently happens with freelancers as they are constantly involved in the current task or acquiring a new one.

Moon Invoice’s online invoicing software helps you with payment reminder feature to keep you updated on your upcoming payments. Also, the software offers recurring invoice option in case you are working for a regular client. 

Do You Wish To Get Your Invoices Paid On Time?

Disadvantages of using the term ‘Due Upon Receipt’:

Disadvantages of using the term ‘Due Upon Receipt’

The drawback of using the due on receipt method is that there is no assurance that the client will make the payment the next business day. This is because, at times, clients themselves are waiting for their payment and hence are incapable of paying you for the services. 

Moreover, some clients would only want to pay yours after checking the work and usually with certain corrections as per their need. Finally, you need to submit the work as per your client’s specifications, but this will also delay you in receiving your payment.

So, there can be issues with the time when you are mentioning the upon receipt meaning clearly in your invoice. But if the client is professional and has a good accounting team, this couldn’t be an issue. 

Send invoices integrated with payment link!

One of the best ways to help your clients pay you on time is to download our invoice maker app, Moon Invoice. It has got an auto-pay button to enhance the concept of payment due upon receipt invoice terms. Here is how you can expect quick payment from the clients by integrating the pay link. 

Our online invoicing software helps you integrate direct payment links in the invoice. Hence, you need not worry about the payments. Clients can verify the invoice and can pay you on time by clicking on the payment link. Also, our free invoice generator app helps you get the payment alert when a client sends you the payments. 

Hence, it is quick and easy to get your due payments in your bank account by integrating a simple pay button in your commercial invoices. Also, you get a terms and conditions or notes section in the invoice to mention about the payment due upon receipt invoice terms. 

Read More: Here is Why You Should Use Invoice Payment Terms For Your Small Business

Final summary

To conclude, due on receipt meaning is an invoice term used to get paid fast so that your work does not get affected by cash flow. There are few downsides to it, but mostly it benefits freelancers and business owners who need the money right away. You can get the benefit of due on receipt with our online invoice maker app.

If you are unsure and looking for an on-the-go available & free invoice generator,  click here. You can go with a free trial period and check for yourself how seriously your clients take you and your work so that you get paid quickly. 

Moon Invoice is a professional invoice app maker proven to be a boon for solopreneurs, entrepreneurs and business owners.  It provides you with multiple payment options along with efficient payment terms. With Moon Invoice, you can work anytime, anywhere, and on top of it, the app is available for all platforms, i.e., iOS, macOSAndroidWindowsand WebApp.