Payment terms and late fees: what to put on your invoice

Updated 12 November 2026 · 2 min read

Payment terms are the rules for how and when you get paid. Written on the invoice, they make late payment less likely, and give you something to point to when it happens. Here is wording you can copy.

What payment terms are

Payment terms say when the money is due, how to pay and what happens if it is late. They are short, and they sit near the bottom of every invoice.

Common terms to choose from

Due on receipt: pay as soon as you get the invoice. Good for small jobs and online sales.
Due in 7 days: for short jobs.
Due in 14 or 30 days: common for company customers and larger work.
Deposit plus balance: a share upfront, the rest on a date or on delivery.

Wording you can copy

Standard termsPayment is due within 14 days of the invoice date. Please pay to the account above and send proof of payment.

Deposit termsA 50% deposit confirms your order. The balance is due before delivery.

Late feeInvoices unpaid after the due date may attract a late fee of [2]% per month on the outstanding balance.

About late fees

A late fee is only fair, and only holds in practice, if the customer knew about it before the job started. Put it on your quotation and invoice from the start. Many small businesses never charge it, and use it as a reason for customers to pay on time. Keep the rate reasonable, and if you are unsure about enforcing it, ask a lawyer.

Make the terms work

Put the due date as a real date, not only "14 days".
Send the invoice immediately.
Remind politely before and after the due date. See payment reminder messages.
Keep terms short. Nobody reads a long paragraph.

Save your terms once

Retyping terms on every invoice wastes time. Aurum lets you save your notes and terms once, so they appear on every document, and tap one to add it.

Questions people ask

What payment terms should I use?

Due on receipt for small or online jobs, 7 days for short work, and 14 or 30 days for company customers. Use a deposit for custom or large jobs.

Can I charge interest on late payment?

Only if you told the customer in advance, ideally on the quotation and invoice. Ask a lawyer if you are unsure.

Where do payment terms go?

Near the bottom of the invoice, close to your account details.

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