Essential Payment Terms
Every invoice and contract should include: payment due date, accepted payment methods, late fees, and consequences of non-payment.
Payment Due Date
- Net 15: Payment due 15 days after invoice date (recommended for new clients)
- Net 30: 30 days (standard for established clients)
- Due Upon Receipt: Immediate payment (use for small amounts or risky clients)
- 50% Deposit, 50% on Delivery: Split payment for project work
Late Fee Language
Example: "Late fees of 1.5% per month (18% APR) apply to overdue balances. Invoices unpaid after 30 days may be sent to collections."
This is enforceable in most jurisdictions and motivates on-time payment.
Accepted Payment Methods
Specify: "Payment accepted via credit card, ACH bank transfer, or check. Online payment link provided on invoice."
Cancellation & Refund Policy
Example: "Deposits are non-refundable. Project cancellations after work begins are subject to a 50% kill fee for work completed."
Scope Changes
"Additional work beyond the agreed scope will be billed at $150/hour with a new invoice."