Invoice terms and conditions are the rules on an invoice that set out when and how a customer must pay, and what happens if they pay late, covering the due date, accepted payment methods, any deposit, and any late fee. The 12 templates below cover each case and can be copied, mixed or downloaded.
You do not need a lawyer to write payment terms. Pick a template below, swap the bracketed details for your own, and you are done. This article is general information, not legal advice. For wording specific to your industry or country, check with a qualified professional.
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Set your preferences and copy a ready-to-use payment terms paragraph for your invoices, quotes or contract. Edit the wording to fit your business.
General wording, not legal advice. For important contracts, have your terms reviewed by a professional.
What should payment terms say on an invoice? Keep it to one clear line stating the due date, the amount, how to pay, and any late fee, for example: “Payment due within 30 days. A late fee of $25 applies to overdue balances.” Use the fuller versions below for quotes and contracts, and see examples of payment terms to write on the invoice itself for Net 30, deposit, early-discount and industry wording.
Xero Small Business Insights measures how often invoices are paid after the agreed date.
| Country | Paid late | Year on year |
|---|---|---|
| Australia | 4.3% | -2.7 pts |
| New Zealand | 5.1% | -0.5 pts |
| UK | 8.3% | -0.9 pts |
| US | 8.3% | -0.1 pts |
| Canada | 11.4% | +0.8 pts |
Source: Xero Small Business Insights, June 2026. See the full data on the Paidnice accounts receivable statistics dashboard.
Terms that ignore that rate are written for the customers who were never the problem. Before you set your own terms, it is worth checking how long customers in your industry actually take to pay.
Copy any template straight into your invoice, quote or contract. You can also tick several to mix and match them into one set of terms, then copy the selection or download it as a PDF or editable Word file (both are generated instantly in your browser, no sign-up). Replace anything in [square brackets] with your own details.
Payment is due within [30] days of the invoice date (Net 30). Please pay to the account details shown and quote invoice number [#INV-0000]. Overdue balances may be subject to a late fee as set out in our terms.
Payment is due on receipt of this invoice. Please settle the full amount of [$0.00] within [7] days to avoid a late payment fee.
This quote is valid for [30] days from the date above. Acceptance confirms agreement to our payment terms: a [50%] deposit to begin work, with the balance due within [14] days of completion.
A deposit of [50%] (or [$0.00]) is required before work begins. The remaining balance is due [on completion / within 14 days of the final invoice]. Work will not commence until the deposit is received in cleared funds.
Fees are invoiced in [three] stages: [30%] on commencement, [40%] at [the agreed midpoint], and [30%] on completion. Each invoice is payable within [14] days. Work on the next stage begins once the prior invoice is paid.
Services are billed [monthly] in advance at [$0.00] per [month]. Invoices are issued on the [1st] and payable within [7] days. The agreement renews automatically each [month] until canceled with [30] days' written notice.
Approved account customers are granted [Net 30] credit terms from the invoice date. Credit limits are set at our discretion and may be reviewed. Accounts that exceed their limit or terms may be placed on hold until cleared.
Overdue balances are subject to a late fee of [$25] and interest at [3% per month / the statutory rate], charged daily until paid. We reserve the right to suspend work and to recover reasonable costs of collection on overdue accounts.
We accept payment by [bank transfer, credit or debit card, and direct debit]. Card payments may carry a surcharge of [up to 2%]. Please do not send cash. Payment is treated as received only once cleared funds reach our account.
Progress claims are submitted [monthly] and payable within [14] days of the claim date. A retention of [5%] may be held until [practical completion / the end of the defects period]. Variations must be agreed in writing before work proceeds.
Full payment is taken at checkout before your order is processed. Prices include [VAT/GST] where applicable. Orders are dispatched within [2 business days] of cleared payment. See our refund policy for returns and cancellations.
Payment due within [30] days. A late fee of [$25] applies to overdue balances. Thank you for your business.
Tip: tick several templates to mix and match them into one set of terms, then copy or download. Replace anything in [square brackets] with your own details.
Not sure your terms cover everything? Run through the checklist.
A complete set of payment terms and conditions usually covers these eight points. Use it as a checklist.
What is Net 30? Net 30 means payment is due within 30 days of the invoice date. It is the most common default for business invoices. Net 7 and Net 14 are shorter, Net 60 is longer, and “due on receipt” means pay straight away. More terms below.
These are the standard terms and abbreviations you will see on invoices and quotes.
| Term | What it means |
|---|---|
| Due on receipt | Payment is expected as soon as the invoice is received. |
| Net 7 / 14 / 30 / 60 | Payment is due within that number of days of the invoice date. |
| EOM | Payment is due at the end of the month the invoice is issued. |
| 2/10 Net 30 | A 2% discount if paid within 10 days, otherwise the full amount is due in 30. |
| CIA (cash in advance) | Full payment before any goods or services are provided. |
| COD (cash on delivery) | Payment is due at the point the goods are delivered. |
| 50% upfront | Half is paid before work begins, with the balance on completion. |
| Line of credit / account | Agreed ongoing credit terms for approved repeat customers. |
For construction retention terms, see Progress claims and retentions in Xero: how to invoice and chase them.
Online and subscription payment terms usually sit inside your website terms and conditions as well as on the invoice itself, covering when payment is taken, the billing cycle, accepted methods, and what happens on a failed or late payment. Cover these five points so there is no ambiguity at checkout or renewal:
A customer agrees to these the moment they check out or accept your terms, which is what makes them enforceable.
Payment terms that get paid are short, specific and consistently enforced, with a firm due date, a short payment window, and a stated late fee that is actually applied. The biggest levers:
One caveat. These templates cover the vast majority of small-business situations, but they are not a substitute for a lawyer when the stakes are unusual: a large supply agreement, anything with significant liability or intellectual property, or terms you intend to enforce in a jurisdiction you do not operate in. For everyday invoicing, the templates above are enough. For the unusual cases, use them as a starting point and have a professional check the wording.
Most countries require an invoice to show the seller's name and address, an invoice number and date, a description of the goods or services, the amount due, and any tax charged. Payment terms are not usually a legal requirement, but they are what makes a late invoice enforceable, because the customer agreed to them before the work started. Tax invoices carry extra rules: a UK VAT invoice needs the VAT number and the VAT amount per rate, and an Australian tax invoice over A$1,000 needs the buyer's identity or ABN. Rules vary by country, so check your local requirements for anything beyond the basics. The templates on this page cover the payment terms, not the full statutory invoice checklist.
Payment terms and conditions are the rules for how and when a customer pays you. They set the payment window (such as Net 30), accepted methods, any deposit, and what happens if an invoice is late. Agreed in advance, they make your invoices easier to enforce.
Net 30 (payment due within 30 days) is the most common default for business invoices. Use shorter terms like Net 7 or due on receipt for new customers or smaller jobs, and add a deposit for larger projects.
Yes. Use the buttons above to download all 12 templates as a PDF or an editable Word (DOCX) file. For a spreadsheet, copy any template and paste it straight into Excel or Google Sheets.
Keep it to one clear line, for example: "Payment due within 30 days. A late fee of $25 applies to overdue balances." State the due date, the amount, how to pay, and any late fee. The generator above builds this for you.
State the deposit as a percentage or fixed amount, that it is due before work begins, and when the balance is payable. For example: "A 50% deposit is required before work begins, with the balance due within 14 days of completion."
They are binding when the customer has agreed to them in advance, usually by accepting your quote, contract or terms of service. Repeating them on each invoice reinforces the agreement but does not replace it.
Shorter terms, a clear late fee, and a deposit. Net 7 or due on receipt, a stated late fee or interest rate, and an up-front deposit all reduce the time and amount you are exposed to. Automating reminders and fees keeps the policy consistent.
Paidnice applies your payment terms, late fees and interest automatically in Xero and QuickBooks, sends the reminders, and keeps a full audit trail, so the terms you just set actually get followed on every invoice. Customers who enforce their terms this way cut their average wait for payment in half, within 30 days.
On Xero or QuickBooks? Sign up to Paidnice free, no credit card required, and stop chasing payments.
Written by Denym Bird, co-founder and CEO of Paidnice, which helps thousands of small businesses get paid on time. Reviewed for accuracy and updated for 2026. This article is general information, not legal advice.
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