Template
Payment terms example page
Payment terms are the most boilerplate-looking part of an invoice and the part that does the most work when something goes wrong. Use the wording below as a starting point and adapt to your jurisdiction. Where statutory interest applies (e.g. EU Late Payment Directive, UK Late Payment of Commercial Debts Act), reference it explicitly.
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When to use
- When setting up the default payment terms on your invoice template.
- When negotiating contract terms with a new B2B customer.
- When reviewing terms after a dispute or a slow-paying customer.
Examples
Standard B2B payment terms — Net 14
PAYMENT TERMS
Payment is due within 14 calendar days of the invoice date.
Accepted payment methods:
- Bank transfer (preferred). Bank details are on this invoice. Please use the invoice number as the payment reference.
- Card or digital wallet via the payment link on the invoice.
Late payments:
- Invoices not paid by the due date will accrue interest at 8% per annum, calculated daily on the outstanding balance.
- A fixed administration fee of 40 may be added per reminder issued after the due date.
- Where statutory rights apply (e.g. UK Late Payment of Commercial Debts Act 1998), we reserve the right to claim statutory interest and fixed sums in addition to the above.
Disputes:
- Any query on this invoice must be raised in writing within 7 days of the invoice date.
- After 7 days the invoice is deemed accepted in full.
Currency:
- All amounts are denominated in {currency}. Bank fees on incoming payments are the responsibility of the payer.This is a strong default for B2B work in jurisdictions with statutory late-payment rights. Adjust the percentages and fees to match your local law.
Consumer payment terms — Due on receipt
PAYMENT TERMS Payment is due on receipt of this invoice. Accepted payment methods: - Card or digital wallet via the payment link. - Bank transfer using the details below. Late payments: - A reminder will be issued 7 days after the invoice date if payment has not been received. - A second reminder will be issued 14 days after the invoice date. - Unpaid invoices may be referred to a collection service after 30 days. Refunds: - Refund requests within 14 days will be considered in line with consumer protection law in your jurisdiction.
Consumer terms should be shorter, gentler in tone, and explicit about refund rights where applicable.
Retainer / subscription terms
PAYMENT TERMS
This invoice covers the period from {start_date} to {end_date}.
Payment is due in advance, on the first day of the period.
Accepted payment methods:
- Direct debit or standing order (preferred for ongoing engagements).
- Card on file, charged automatically on the renewal date.
- Bank transfer for the first invoice; subsequent invoices may default to one of the methods above.
Cancellation:
- Either party may cancel with {notice_period} written notice.
- No refunds are issued for the current period; the engagement continues to the end of the paid period.Retainers and subscriptions need a notice period and a clear stance on refunds. Both protect both sides from messy renewals.
Tips
- State the terms in plain language. Buyers ignore legalese.
- Always specify the currency, even when 'obvious'. Cross-border ambiguity is expensive.
- Mention statutory interest rights where they apply — even if you never charge them.
- Keep the disputes window short (7 days) so silence becomes acceptance.
- Update the terms once a year. Statutory rates and consumer law change.
Frequently asked questions
- Do I need different terms for B2B and B2C?
- Usually yes. B2B terms can rely on commercial debt legislation and shorter dispute windows. B2C terms must respect consumer protection laws in the buyer's jurisdiction.
- Should payment terms be on every invoice or in a separate contract?
- Both. The contract is the legal anchor; restating the key terms on every invoice removes ambiguity at the moment payment is being processed.