The customer has sent it to accounts. But you still want to clarify the payment date. When taking on the job, agree what is to be paid, when, how, and whom to ask in case of questions. Include the details on your invoice. A few clear sentences give both parties a basis to work from.
Replace general deadlines with date entries in your calendar
“Payment at month-end.” Which month-end? “30 days after receipt.” Who receives the invoice? Establish the starting event, then add your specific due date. Internal approvals can take time, and customers may have their own payment cycles. Clarify during your quote.
An invoice dated September 22, payment due 30 days after the invoice date: “Net 30, due October 22, 2026.” Or the period might begin after acceptance or receipt of a valid invoice. Use the agreed starting point. And clarify how you handle weekends and holidays.
- Due on receipt. Explain your definition of receipt.
- Due on a specific date. Add the date to your invoice.
- Advances, instalments. Give the exact amounts and triggers.
- Pay weekly/monthly. Specify the period and payment day.
Match payment methods and details
Specify the payment methods you actually accept, e.g. bank transfer, card, cheque, cash, online payment link. Include the settlement currency, payment instructions, invoice reference and who pays transaction fees where legally permitted. For cross-border payments, factor in possible processing times and exchange rates. Clarify this before you issue the invoice.
Remove old account info from the template. Before you send out a link for making a payment, check the link. If bank account details have changed, confirm them through a known, trusted channel. Don't just trust an email saying the account changed.
- What's the accepted mode of payment and currency of settlement?
- Are the account/payment link instructions correct?
- Invoice reference to use when making a payment.
- How you confirm a change of payment information.
Free invoice due date calculator
When calculating the calendar due date, select the correct starting point
What this tool does: it adds calendar days for Net 7, Net 15, Net 30, Net 45, Net 60 or Net 90 to the selected invoice date. It does not detect whether the invoice is received or accepted, move dates for weekends or holidays, or interpret legal requirements.
If you select “Due on receipt”, it gives the selected invoice date. This doesn't mean it knows when the customer received the invoice. Only rely on it if the date matches the agreement. Manually enter the checked due date on the invoice creation page.
Give different triggers for advance and balance payments
Specify the amount of the advance. Say whether it is required before starting work, what is considered acceptance and when the balance is due. Show received advances and credits on later invoices so the balance can be verified.
Be aware that “deposit” may have a special meaning in certain jurisdictions. Don't just automatically use it; use phrasing that reflects the agreement. Make sure each milestone invoice has a clearly identifiable trigger too.
For example, a hypothetical 10,000 project: 3,000 on booking. 4,000 on an agreed milestone. 3,000 on final delivery. This is not the norm for the entire industry. Don't tie payment to being “almost done”. Explain the steps and approvals.
- Amount in advance and condition to begin work.
- How does one determine completion of a stage?
- Early payment discount basis and deadline.
- Applicable late payment terms and follow-up.
Who takes on questions and reminders?
- Agree a billing contact with customers and when questions should be raised.
- Assign someone to check work records, correct real mistakes and answer. Include other confirmed amounts due if only one charge is challenged.
- Send the invoice. Then confirm receipt.
- Near the due date. Reminder.
- Direct contact with the customer.
- Address unresolved balances according to the agreement.
- Reminders should show the invoice number, remaining amount and original due date. Ask for an expected payment date.
- Stop or adapt inappropriate reminders on receipt of payment, agreed instalments or when dealing with a dispute.
- If the customer is temporarily short of cash, discuss a plan. Amounts. Dates. Keep confirmation.
- Be factual. Keep the communication linked to the invoice.
- Billing contact and response channel.
- Timing for questions and resolving disputes.
- Dates for reminders. Who is in charge.
- How to follow up unresolved balances.
Make payment abbreviations into an instruction the customer can follow
When does Net 30 begin? Which month-end is EOM referring to? Shipment, delivery, invoice receipt. They are separate events. COD usually refers to paying on delivery. Due on receipt concerns receipt of the invoice. Unfamiliar codes such as CBS or CND can mean different things. Say what was actually agreed between you both.
| Arrangement | Other information in the invoice |
|---|---|
| Net 7 / Net 30 | Starting event. Calendar deadline. |
| EOM | Which month-end and any additional days |
| PIA / CIA | Amount payable before work or supply |
| COD | Delivery and payment timing |
| Contra or set-off | Agreed offsets and remaining balance |
Consider cash when offering terms to a new customer
Buy materials up front, work for a month, then wait sixty days after delivery to the customer. You may well be carrying the job for a long time. Make a schedule of when material, labour, subcontractor and daily costs leave your account. Can you afford the cost?
It's not always true that a profitable project has the cash when needed.
Perhaps you should think about asking for a part payment up front. Milestone payments. Changing delivery timing within a clear scope. If the customer's process can't be modified, include the funding cost and work schedule in price discussions.
When negotiating, think about the project size, credit, industry norms and customer's approval process. Don't offer the same terms to each new customer.
Do you need an early payment discount?
A qualifying 1,000 charge has a 2% discount of 20.
Is faster receipt worth that cost?
- Consider the reconciliation effort if the discount is taken after the deadline.
- What charges are covered?
- Is the basis tax-inclusive or tax-exclusive?
- Do partial payments qualify?
- How are reimbursable costs and the final amount handled?
- Do not change the calculation after payment is received.
Agree how each period of ongoing service will be invoiced
Include the service period, date of issue and due date. Scope of the fixed fee. How extra work is authorized. Agree deadlines for monthly information and acceptance, if any.
For prepaid hours or an ongoing service allowance, show usage and explain unused or excess amounts in advance.
Auto-invoicing doesn't mean auto-collection has been authorized, or that the cash is in. If you're using auto-collection, confirm authorization, methods and cancellation separately. Give the agreed notice for price changes, service suspension or a decision not to renew.
Early payment discounts and agreed late fees
“2/10 Net 30”. In general, this means a 2% discount for qualifying payment within 10 days. Otherwise full payment is due in 30 days. State when each period begins. Which charges qualify? Offer it when you can and want to absorb the cost.
Be upfront about agreed late fees. Specify how they are calculated and for what period. Adding a previously unagreed penalty after payment becomes late does not itself create a contractual or legal basis. Statutory interest on late commercial payments may have its own rules. This is different from fees agreed with the customer. Don't apply one jurisdiction's rules to everyone.
Stopping new work, demanding payment or formal collection also depends on the contract and applicable local rules. Is the invoice there yet? In dispute? Request a specific payment date. Keep the accepted terms. Track the communications.
Finance and collection
Invoice finance releases cash against eligible receivables, depending on the provider's arrangements and contract. Collection may be part of factoring. Invoice discounting typically leaves collection to the business. Customer disclosure. How much is available upfront. Charges. Responsibility for unpaid debts.
Compare overall cost and impact on daily business with advances, instalments and improving payment processes.
- Finance cannot resolve a genuine dispute about the work.
- Not all overdue balances are eligible.
See the main options and considerations in the British Business Bank guide below.
Frequently asked questions
How many days should a new customer get?
This varies with project size, upfront costs, credit and the customer's process. Agree an acceptable period you can support. There's no single answer for every customer.
What if a customer wants a long credit period?
First determine the cost of funding. Discuss advances, instalments or a different delivery schedule. Then decide whether to accept.
What is Net 30?
Generally, payment within thirty days of an agreed beginning date, often the invoice date. But show the actual due date. Follow the agreement if days are counted from another event.
Can I add a late fee to an invoice that's not paid?
Clearly describe agreed fees beforehand and follow local limits. Statutory interest on late commercial payments might apply independently. Confirm applicability and calculation against local rules and the agreement. Don't make up a last-minute penalty.
Isn't it always better with shorter terms?
Not necessarily. Think about your own cash needs, the customer's actual approval and payment process, and the business relationship.