$Paid On Time

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How do I write payment terms that get me paid on time?

Short answer

Good payment terms say exactly when payment is due (a date, not just '30 days'), how to pay, whether deposits or progress payments apply, what happens if payment is late (only reasonable, agreed consequences), and who to contact. Get them agreed in writing before you start work.

General information only, not legal or financial advice. Every business and every debt is different. For advice on your situation, talk to a lawyer, your accountant or your state small business commissioner.

Step by step

  1. 1

    Pick a short, clear term

    7 or 14 days is reasonable for many small businesses.

  2. 2

    Ask for a deposit on bigger jobs

    It reduces risk and tests the customer's commitment.

  3. 3

    Spell out late payment consequences

    Interest or pausing work, only if reasonable and agreed.

  4. 4

    Make paying easy

    Several payment methods and clear references.

  5. 5

    Put the due date on every invoice

    As an actual date.

What else to know

Your terms are only as good as your proof that the customer agreed. Include them in your quote and get written acceptance.

If you use standard form contracts with small business customers, remember the unfair contract terms laws.

All templates

Common questions

Should I offer an early payment discount?

It can work for some businesses, but it costs margin. Clear short terms and consistent chasing often work just as well.

Can I change my terms for an existing customer?

Only with their agreement. Give notice and get written acceptance.

Official sources

Sources checked 14 October 2026. Rules and limits change, so check the official site before acting.

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