Invoice Payment Terms: Getting Paid on Time

Common Payment Terms

Payment terms define when and how you expect to be paid. They are a critical part of your cash flow management.

• Net 30: This standard term means payment is due 30 days after the invoice date. While common in large corporate B2B, it can be slow for small businesses.
• Net 14 / Net 7: Faster payment cycles often used by freelancers and agencies. It balances giving the client time to process payment with your need for cash.
• Due on Receipt: This means payment is expected immediately upon receiving the invoice. This is best for one-off services or smaller amounts.
• PIA (Payment in Advance): Requiring payment before work begins. This is the safest for you and is highly recommended for new clients or large material costs.

How to Enforce Terms

Ideally, you agree on terms before you start working. Mention them in your initial Quote.

In SimplyQuote, you can set a default "Due Date" logic for all your invoices. When you are editing an invoice, look for the "Payment Terms" block. You can explicitly select "Net 15", "Net 30", etc., and the system will automatically calculate the correct due date for you.

Late Fees

Consider adding a late fee clause. For example: "A late fee of 1.5% per month will be applied to overdue invoices."

You can add this text to the "Notes" or "Terms & Conditions" section at the bottom of every SimplyQuote invoice. Even if you rarely enforce it, its presence often encourages clients to prioritize your bill over others.