The common terms
| Term | What it means |
|---|---|
| Due on receipt | Payment expected immediately. Common for small jobs and new clients. |
| Net 7 / Net 14 | Payment due 7 or 14 days from the invoice date. |
| Net 30 | Payment due 30 days from the invoice date. The default for corporate clients. |
| 30 days from statement | Due 30 days after month end — which can mean up to 60 days from the job. |
| COD | Cash on delivery. Payment when goods change hands. |
| 50% deposit, balance on completion | Standard for work with materials or a long lead time. |
Watch '30 days from statement'. An invoice issued on the 2nd is paid at the end of the following month — that is 59 days of your money funding their operation. If a client asks for it, price for it.
Choosing your terms
- New client, small job: due on receipt, or payment before delivery.
- New client, large job: deposit up front, balance on completion.
- Established client, steady work: net 14 or net 30, whichever they will honour.
- Corporate or government client: expect net 30 or longer and plan cash flow around it.
- Anyone who has paid you late twice: back to deposits.
Making the terms stick
- State the terms on the quote, before the work, not for the first time on the invoice.
- Put a specific due date on the invoice — a date, not '30 days'.
- Invoice the day the work is done. Every day you delay is a day added to the wait.
- Make paying easy: banking details on the document and an online payment option in one tap.
- Follow up on a schedule — a reminder just before due, on the due date, and then weekly.
- Send a statement at month end so the client sees the whole balance, not one invoice.
Late fees and interest
You can charge interest on overdue amounts if it is agreed up front — which means it needs to be in your terms on the quote and the invoice, not introduced afterwards when you are annoyed. Whether you actually apply it is a commercial decision, but having the clause makes the follow-up conversation easier even when you waive it.
When a client simply will not pay
- Confirm they received the invoice and that there is no dispute about the work.
- Send a statement showing the full outstanding balance with ageing.
- Phone. An email is easy to ignore; a call is not.
- Send a formal letter of demand with a deadline.
- For smaller amounts, the Small Claims Court is quicker and cheaper than most people assume.