Billing terms guide
Invoice Payment Terms
Invoice payment terms state when payment is due, how it can be made and what happens if the amount is disputed or late. Agree material terms before work begins, then put both the term and exact calendar due date on the invoice.
Reviewed 2026-07-29 · General information, not legal, tax or accounting advice.
| Term | Meaning in this guide | Best practice |
|---|---|---|
| Due on receipt | Payment requested immediately | Still show a specific date |
| Net 15 / 30 / 60 | Calendar days after invoice date unless agreed otherwise | Write the calculated due date |
| Deposit / milestone | Part due before final delivery | State amount and trigger |
| Early-payment discount | Reduced amount if paid by a date | Define the exact calculation |
Write operational terms, not slogans
Include the due date, accepted payment methods, currency, bank or payment reference and a contact for disputes. If a purchase order controls the terms, reconcile it before issue.
“Net 30” can be misunderstood as one calendar month or business days. State the exact date and explain any weekend or holiday convention in the agreement.
Handle fees and disputes carefully
A late-fee sentence does not make every charge lawful. Contract, customer type and jurisdiction affect whether interest, fixed fees, notice or grace periods apply. Verify the rule before charging it.
Give customers a clear way to raise a billing error. Resolve genuine disputes separately from routine reminders so collection messages remain accurate.
Clear wording example
Payment of $2,400 is due by August 28, 2026 (Net 30 from the July 29 invoice date) by bank transfer using INV-1042 as the reference. Please report billing discrepancies to billing@example.com within seven days.
Use the next tool
Continue through the invoice lifecycle
Primary sources
- Payment obligations — GOV.UK