Invoice Payment Terms: Examples You Can Copy

Payment terms tell your customer when and how to pay. They are short, but they decide how fast you get paid. If an invoice only shows a total and says nothing else, customers pay when they get round to it. Clear terms remove the guesswork.

What payment terms should say

Good terms answer four questions:

1. When is payment due? A date or a number of days.
2. How can the customer pay? Bank transfer, card, cash or QR, with your details.
3. Is a deposit needed? If so, how much and when.
4. What happens if it is late? Only include this if you will really apply it.

Common terms, in plain English

• Due on receipt. Payment is due as soon as the invoice is issued. Best for small jobs, walk-in sales and new customers.
• Net 7. Payment is due within 7 days of the invoice date. A good default for short jobs.
• Net 14. Payment is due within 14 days. Common for regular small-business work.
• Net 30. Payment is due within 30 days. Common when you bill companies that run a monthly payment cycle.
• 50% deposit, balance on completion. Half is paid before you start and the rest when the work is done. Good for jobs with material costs.
• Pay before collection. Payment is due before the customer takes the goods or the finished work.

Sample wording you can copy

• "Payment is due on receipt of this invoice."
• "Payment is due within 7 days of the invoice date. Please pay by bank transfer to the account below."
• "A 50% deposit is required to confirm your booking. The balance is due on completion."
• "Please use the invoice number as your payment reference."
• "Invoices unpaid 14 days after the due date may be subject to a late fee of X%. Check the rules where you operate before you add a late fee."

How to choose

Match the terms to the risk. A new customer or a large job deserves shorter terms or a deposit. A long-standing customer who always pays can have longer terms. Whatever you choose, apply it consistently, so nobody feels singled out.

Shorter terms improve your cash flow, but very strict terms can put off customers. Many small businesses start with Net 7 or Net 14 and adjust once they see how people pay.

Put the terms where they will be seen

Terms hidden at the bottom of a long document are easy to miss. Put the due date near the total, and keep the longer wording in your terms and conditions.

In EzInvoice you set the due date on each invoice, and save your terms and conditions and bank details once so they print on every invoice PDF. Once an invoice is past its due date, it shows as overdue in your invoice list. If you do not use due dates at all, for example because every sale is paid on the spot, you can turn the due-date field off in settings.

Deposits and part payments

For larger jobs, ask for a deposit and record it when it arrives. You can record a deposit or any part payment against an invoice, and the status moves from sent to partially paid to paid as the money comes in. That way you always see how much is still owed.

A quick checklist

1. Pick terms that match the size and risk of the job.
2. State the due date clearly, near the total.
3. Include how to pay, and a payment reference.
4. Ask for a deposit on bigger jobs.
5. Only mention a late fee if you will apply it.
6. Use the same terms for similar customers.