Invoice payment terms
Clear payment terms reduce late payment and disputes. State the due date, how to pay, and what happens if payment is late — then keep the same terms on every invoice.
Common payment terms
- Payment due within 14 days of the invoice date
- Payment due within 30 days of the invoice date
- 50% deposit on acceptance, balance on completion
- Payment due on receipt for small one-off jobs
- Milestone payments for larger projects
Example wording
“Payment is due within 14 days of the invoice date. Please pay by bank transfer to the account shown below and quote the invoice number as the payment reference.”
For business customers: “We reserve the right to charge statutory interest and compensation for late payment under the Late Payment of Commercial Debts (Interest) Act 1998.” Check your contract and take advice if needed.
Practical tips to reduce late payment
- Agree the due date and process before work starts
- Send invoices promptly and to the right billing contact
- Include a purchase order number if the client requires one
- Follow up a few days before the due date
- Keep a record of reminders and payment dates
Related tools and guides
Frequently asked questions
What is a standard payment term in the UK?
There is no single standard. 14 or 30 days from the invoice date are common. Agree the term with the customer and state it clearly on the invoice.
Can I charge interest on late payments?
For business-to-business debts, statutory late-payment rules may apply. For consumers, different rules apply. Check your contract and seek professional advice for your situation.