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If the deadline for paying a bill has come and gone, it may be labeled "past due."If you're running a small business, it might be tempting to label all your invoices as "due on receipt." After all, once you provide goods or services to your customers, you naturally want to be paid as quickly as possible, especially if you've incurred some expenses of your own.

Still, there can be reasons to use other, more generous billing terms.

If you see the phrase "net 60" on an invoice or in a contract, it refers to how long a customer has to pay for goods or services after the bill is received.

In particular, "net 60" means the customer has 60 days to pay before the bill is overdue.

If you don't have a standard contract that you use with customers, you might want to ask a lawyer for help drafting one, especially for larger deals.

While this can cost some money up front, it will be worth it in the long run, especially if there's ever a dispute about your bill.

You may also specify when you will invoice the company, which – depending on the nature of the business you're in – might be on a monthly basis, after certain milestones are met on a project or based on some other terms.

Some contracts might also specify how the customer can evaluate whatever it is you've delivered, ask for replacements of damaged or otherwise unusable merchandise, and request alterations to work you've performed.

If you're the one receiving a bill with "net 60" or some other payment information on it, you'll want to adhere to the terms to maintain a good relationship with your supplier, particularly if you've agreed to the payment terms ahead of time.

Still, it's a good idea to make sure you're satisfied with whatever you've bought before sending off payment, because it can be harder to reclaim money you've already paid than to negotiate after the check is already in the mail.

If your business needs to bill customers, you may want to get payment terms in writing when you first sign a contract, and put language on invoices explaining when payment is due and what happens if it's overdue.

Typically, when you receive or send out a bill, there will be some notice of when payment is due.

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Some customers may be more willing to work with you if you give them some breathing room to evaluate your work and get the funds together to pay you than if you demand immediate payment.

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