Guides

Payment terms for small business invoices (with wording you can copy)

Clear payment terms are the cheapest way to get paid faster. When the due date, the amount and the way to pay are obvious, most customers simply pay. When they are vague, invoices drift.

Pick a short, specific due date

“Due on receipt” sounds firm but is easy to ignore because there is no date. Use a real date instead: 7 days for one-off customers and homeowners, 14 days for small businesses, and 30 days only when a larger client insists. Always print the actual date on the invoice, not just “Net 14”.

Ask for a deposit on new or large jobs

A deposit of 25–50% covers your materials and time, and it shows the customer is serious. For longer projects, split the price into stages (for example 40% to start, 40% at a milestone, 20% on completion).

Wording you can copy

Payment terms: payment is due within 14 days of the invoice date, by {due date}.
Pay online: {link}  or bank transfer to {account details}, quoting invoice {number}.
Deposit: a {X}% deposit is due before work starts. The balance is due on completion.

Agree the terms before the work

Put the same terms on your quote or proposal and ask the customer to accept it in writing (an email reply is fine). Terms that appear for the first time on the invoice are much easier to dispute.

Make paying the easy option

• Add one payment link or card option; every extra step delays payment.
• Send the invoice the day the work is finished.
• Address it to the person who approved the work, and copy the accounts inbox for businesses.

Late fees: use them carefully

Some countries let businesses add interest or a fixed fee on late commercial invoices, and some limit it, especially for consumers. If you use one, state it on the quote and the invoice, and check the rules where you and your customer are. In practice a polite, well-timed reminder recovers more money than a fee.

Back the terms with a reminder schedule

Terms only work if you follow up. A simple rhythm: a heads-up 3 days before the due date, a friendly reminder the day after, a clear follow-up at 7 days and a phone call at 14 days. See how to chase an unpaid invoice politely for the full sequence.

Need wording? Get the 5 free reminder templates.

Get the free chasing schedule

A one-page plan for when to send each reminder. Enter your email and it opens right here.

Email Also send me occasional tips and offers about getting paid. Unsubscribe any time.Show my schedule

We store your email; we only send tips and offers if you tick the box. Privacy.

More guides

• How to chase an unpaid invoice politely (step by step)
• What to do when a client won’t pay: a practical checklist
• Late payment email for freelancers (3 templates that work)

General information, not legal or financial advice. Rules differ by country.