Payment terms tell your customer when you expect to be paid. They're one of the simplest ways to get paid faster, and one of the most often forgotten. Here's how to choose them and write them.
The common options
- Due on receipt means pay as soon as you get the invoice. It suits small jobs and one-off customers.
- 7 days is common for homeowners and small jobs.
- 14 days is a sensible default for most trade work.
- 30 days is normal for businesses, letting agents and contractors, who often pay in monthly runs.
Whatever you choose, put a due date on the invoice, not just "14 days". "Payment due by 24 November 2026" is much harder to forget. Our invoice generator works out the due date for you when you pick the terms.
What the law says for business customers
If your customer is a business, GOV.UK explains the rules on payment periods:
- If you don't agree a payment date, payment is late 30 days after the customer gets the invoice, or after you provide the service if that's later.
- If you do agree a date, it must usually be within 60 days for business transactions, or 30 days for public authorities.
- You can agree a longer period than 60 days with another business, but it must be fair to both businesses.
If a business pays late, you may be able to claim statutory interest and compensation. Our guide on charging interest on late payments explains how.
Homeowners and other consumers
For work for homeowners, the payment terms are whatever you agree. Put them in your quote before you start, repeat them on the invoice, and keep them simple. "Payment due within 7 days of the invoice date" is clear and fair.
Wording that works
On the invoice, keep it short and specific:
- "Payment due within 14 days, by 24 November 2026."
- "Please pay by bank transfer to the account below, using invoice number INV-0042 as the reference."
Avoid jargon like "Net 30". Many customers don't know what it means.
Deposits and stage payments
Payment terms don't have to mean waiting until the end. On bigger jobs, set out a deposit and stage payments in your quote, for example 25% on acceptance, 50% at a midway stage and the balance on completion. Each stage gets its own invoice with its own due date, so you're never owed the whole job at once.
Tips to get paid faster
- Agree terms before you start. Put them in the quote, so the invoice holds no surprises.
- Invoice on the day you finish. The clock only starts when the customer has the invoice.
- Make paying easy. Include your bank details and a clear reference on every invoice.
- Take deposits on larger jobs, and invoice in stages on long ones.
- Follow up promptly. A friendly reminder a few days after the due date works better than waiting a month. Our late payment letter has ready-written wording.
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Frequently asked questions
What payment terms should a tradesperson use?
Seven or 14 days is common for homeowners. Thirty days is normal for businesses and contractors.
Can I ask for payment on completion?
Yes. Many trades ask for payment on the day the job is finished, especially for smaller jobs. Agree it before you start.
What if a business wants 60-day terms?
You can agree to it, or negotiate something shorter. Agreed periods for business transactions must usually be within 60 days unless longer is fair to both sides.
This guide is general information, not tax or legal advice. Rules change, so check GOV.UK for the latest position.