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Payment Terms Generator

Choose how and when you get paid, then copy a ready-to-paste payment terms clause for your contract or SOW and a one-line version for your invoice footer.

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Payment structure

Late payment

Extras

Contract / SOW clause

Payment Terms

1. Invoices are issued upon completion of the work (or as agreed in the Statement of Work) and are due within 30 days of the invoice date.
2. All amounts are in USD and exclude applicable taxes. The Client is responsible for any bank or transfer fees so that [Your Company] receives the full invoiced amount.
3. Accepted payment methods: Bank transfer / ACH, Online payment link.
4. Overdue amounts accrue interest at 1.5% per month (or the maximum rate permitted by law, if lower) from the due date until paid in full.
5. If any invoice remains unpaid 15 days after its due date, [Your Company] may pause work until the account is brought current, and delivery dates will move accordingly.
6. Invoice disputes must be raised in writing within 10 days of the invoice date; undisputed portions remain payable by the due date.

Invoice footer

Payment due within 30 days (Net 30). Late payments accrue 1.5% interest per month. Pay by bank transfer / ach, online payment link.

Template, not legal advice. Interest limits and statutory late payment rules differ by country and state.

Clear payment terms get paid faster

Most late payments start with vague terms. "Payment due on completion" leaves room to argue about what completion means, and an invoice with no stated late fee gives the client no reason to prioritise it. Terms that spell out the due date, the stages, and the consequence of paying late remove that room before the work starts.

Put the full clause in the contract or statement of work and the short version on every invoice, so the terms the client signed are the terms they see when it is time to pay. This is a starting template, not legal advice, so have anything unusual reviewed for your jurisdiction.

Frequently asked questions

What are standard payment terms for B2B invoices?

Net 30 is the most common, meaning payment is due 30 days after the invoice date. Service businesses often shorten this to Net 15 or Net 14, ask for a deposit before work starts, or bill retainers monthly in advance.

What should payment terms include?

When payment is due, how much is due at each stage, which payment methods you accept, the invoice currency, what happens if payment is late (a late fee and when work pauses), and any early payment discount.

Can I charge a late fee on invoices?

Generally yes, if the fee was agreed in the contract or terms before the work began. Limits vary by country and state: some cap interest rates, and the UK sets statutory late payment interest for business debts. Check what applies to you before using a high rate.

What does 2/10 Net 30 mean?

The client can take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30 days. It is a way to pull cash forward from clients who can pay quickly.

Should I ask for a deposit?

For project work with a new client, a 30-50% deposit before work starts is common and lowers your risk. For ongoing work, billing monthly in advance does the same job.

Now put these terms on a real document. The free Quote Generator and Invoice Generator take the footer text in their notes field.

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