Payment terms are the deadline you put on an invoice — how long the customer has to pay you. It sounds like a tiny detail, but it is one of the biggest levers you have over your cash flow. Set it too long and you are effectively lending your customers money for free. Here is how to choose.
Why the number matters more than you think
Customers treat your stated due date as the deadline — and most people pay right near it, not before. That means a 30-day term almost always becomes 30-plus, while a 7-day term usually lands within a fortnight. The term you write is the single easiest thing to change, and it moves money into your account weeks sooner.
For a sole trader or small crew, waiting an extra three weeks on every invoice is the difference between comfortably covering materials and payroll — and putting the next job on the credit card.
The options, and when to use each
Due on completion / on receipt
Best for smaller residential jobs — call-outs, repairs, one-day work. Present the invoice the moment you pack up and take payment on the spot by card or bank transfer. This is the fastest you can possibly get paid, and for everyday work customers expect it.
7 days
A great default for standard residential jobs where the customer needs a day or two to organise payment. It is short enough to keep your cash flow tight but gives a reasonable window. Most homeowners are fine with it.
14 days
The most common trade term. A fair balance that suits slightly larger jobs and customers who pay by their own schedule. If you are not sure what to use, 14 days is a safe, professional choice.
30 days
Standard for commercial clients, builders and larger companies with formal accounts-payable runs. Do not offer 30 days to a homeowner out of politeness — you will just wait a month for money you could have had in a week. Reserve it for clients who genuinely require it.
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Open the free toolHow to word terms so they actually stick
- State the term on the quote as well as the invoice, so it is agreed before the work — not sprung afterwards.
- Put an actual due date on the invoice (e.g. "Due 14 July 2026"), not just "14 days". A real date is harder to ignore.
- Make paying easy — include your bank details and, ideally, a card or pay link right on the invoice.
- Spell out what happens if it is late (a reminder, then a possible late fee) so there are no surprises.
When the due date passes anyway
Even perfect terms get ignored sometimes. The trick is a calm, staged follow-up that starts friendly and firms up over time — not a silence that stretches into months. Clear terms give you the professional footing to chase without feeling awkward about it.
Frequently asked questions
There is no legal default, but the most common terms for trade work are 7 or 14 days from the invoice date. Larger builders and commercial clients often push for 30 days. As a small operator, shorter is almost always better for your cash flow — 7 to 14 days is the sweet spot for residential work.
Yes. For smaller residential jobs, "payment due on completion" or "due on receipt" is completely normal and gets you paid fastest. Take a card or bank transfer on the spot. For bigger jobs a deposit up front plus the balance on completion is standard.
Generally yes. Studies of small-business invoicing consistently show shorter stated terms lead to faster payment, because customers treat the due date as the deadline. A 30-day term often becomes 45 in practice; a 7-day term is usually paid within two weeks.
Clear terms give you a firm, professional footing to chase from. Once the due date passes, a polite reminder that references the agreed term usually does the job. If it keeps sliding, escalate calmly through a staged follow-up rather than letting it drift.
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