What are some of the payment terms commonly used on invoices?

Payment terms commonly found on invoices include "Net 30," "COD," "preferred payment method discount," and "student discount." Terms are the conditions under which a business completes a sale.

An invoice typically records three types of sale conditions: when payment is due, any discounts the buyer is to receive, and special provisions. One special provision is the method of payment accepted, such as "cash or credit" versus "cash only." According to FreshBooks.com, using "# days to pay" instead of "net #" results in customers paying vendors faster, while charging interest on late payments results in customers delaying payments but also paying a higher percentage of invoices.