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Payment terms

The line that says when payment is due, how to pay, and what happens if the date passes.

Part of the invoicing glossary, plain definitions of the words on an invoice, a quote and a job.

In one line

The line that says when payment is due, how to pay, and what happens if the date passes.

Also called invoice terms, terms of payment, or trading terms.

What it means in practice

Terms belong on the quote first, because terms the client agreed to before the work carry far more weight than terms that appear for the first time on the invoice. Repeat them word for word on the invoice.

A complete term names three things: the due date as a date, the accepted payment methods, and the late fee if you charge one.

Example. "Payment due by 28 September 2026 (net 30). Card, ACH or check. Overdue balances accrue 1.5% monthly."

Where it shows up on the paperwork

One line near the totals on the invoice, and the same words on the quote the client accepted. It names the due date, the accepted methods and the late fee if you charge one.

What goes wrong

  • Putting terms on the invoice for the first time, when the work is already done.
  • Writing a term without a date.
  • Having different wording on the quote and the invoice, which is the first thing a client points at in a dispute.

The tools for this

Invoice payment termsWhich terms get invoices paid, and the exact wording.Invoice GeneratorLine items, tax, a payment link and a print-ready PDF.

Related terms

  • Net 30Payment is due 30 days after the invoice date.
  • Due dateThe date payment on an invoice is expected, written as a date rather than a term.
  • Late feeA charge added to an invoice that is paid after its due date.
  • ChargebackA card payment reversed by the client's bank after it has already reached you.
  • Days sales outstanding (DSO)The average number of days it takes you to get paid after invoicing.
  • DiscountAn amount taken off a price, shown as a percentage or a figure on the line or the total.

All 57 terms

Common questions

What payment terms should I use?

Start from net 30 as the default a commercial client expects, then shorten where you can: net 15 or due on receipt for new clients and small jobs, with a deposit when materials are a big share.

Are payment terms on an invoice legally binding?

Terms the client agreed to before the work carry far more weight than terms that first appear on the invoice. Put them on the quote, get it accepted, then repeat them word for word.

What should the terms line actually say?

The due date as a date, how to pay, and the fee if one applies. One sentence covers all three.