Payment terms set expectations. If your invoice does not clearly say when and how a customer should pay, you make late payment more likely.
Choose clear due dates
Avoid vague wording. A specific due date is easier for customers and easier to chase.
- Payment due within 7, 14 or 30 days
- Payment due on receipt where appropriate
- Specific date for larger projects
Include practical payment details
Make it easy for the customer to pay without asking follow-up questions.
- Bank details
- Invoice number reference
- Payment link if used
Use deposits or staged payments
For larger jobs, deposits and milestones can protect cash flow and reduce risk.
- Deposit before work starts
- Stage payment at agreed points
- Final payment before delivery where suitable
Explain late payment process
Your terms can mention interest, recovery costs or work pauses, but the tone should stay professional.
- State when reminders begin
- Reserve the right to pause work
- Keep terms consistent
Review terms by customer type
Not every customer needs the same terms. A long-standing reliable customer may be different from a new high-risk one.
- Shorter terms for new customers
- Deposits for large projects
- Credit checks for bigger accounts
Key takeaway
Good payment terms are clear, visible and backed up by a consistent chasing process.
