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Terms (or Payment Terms): Invoice terms depend on common practices of your industry, your relationship with the customer, and your cash flow needs. For example, “Net 30” means that the invoice is due 30 days after the Invoice Date. Be mindful some businesses may pay later than the stated due date, so you may want to include a buffer to keep your business free from a cash flow gap.

Due Date: The Invoice Date plus Payment Term Days give you the Due Date, which is in plain English and easier to understand. Having a Due Date on the invoice is a tactful and professional way of making it clear to your customer when they should pay.

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