The phrase signifies that payment is expected immediately when an invoice or bill is received by the customer or client. It indicates a requirement for prompt settlement, contrasting with payment terms that allow for a specific timeframe, such as net 30 days. For instance, an invoice marked with this directive demands payment the same day it reaches the recipient.
Utilizing this condition offers several advantages. It accelerates cash flow for the seller or service provider, minimizing the waiting period for funds. This, in turn, improves financial stability and reduces the need for short-term borrowing. Historically, while formal contracts sometimes specified payment schedules, this direct instruction has become more common in situations where quick reimbursement is desirable, often for smaller invoices or ongoing services. Its implementation provides clarity and mitigates potential disputes over payment timing.
