Choosing your terms
Shorter terms get money in sooner, but only if the client can actually meet them. A few rules of thumb:
- Ask how they pay before you set the term. Plenty of larger companies pay suppliers once a month. Net 7 won’t make that run come any sooner. It just makes every invoice late. Ask when their payment runs are and set the due date to land before one.
- Take money up front on new clients. A deposit tells you early whether they pay on time, before you’ve done most of the work.
- Bill ongoing work in advance. With a retainer paid at the start of the month, you’re never working on credit.
- Use dates, not just terms. “Due October 15” is clearer than “Net 14”. Put the actual date on the invoice.
What to put in writing
A late invoice is much easier to chase when the rules were agreed up front. Your proposal or terms should cover:
- When invoices are sent and when they’re due, including deposits and milestones.
- How to pay. A pay link on every invoice beats bank details in a PDF.
- Who receives invoices at their end: a named person or a billing address, not just your day-to-day contact.
- What happens if an invoice is late: reminders, interest or a fee if you charge one, and whether work can be paused. Our suspension clause is a starting point.
Setting due dates in Stripe
When you create an invoice to email to the client, Stripe asks for a due date: either a number of days or a specific date. That date is what turns the invoice Past due in the Dashboard, and what any reminders count from.
After an invoice is finalized, its due date can’t be changed. To move it, void the invoice and send a new one. Overdue invoices in Stripe covers finding and chasing them.
Late-payment rules worth knowing
Some countries give businesses a right to interest and compensation on late invoices from other businesses, even if your contract says nothing about it.
- United Kingdom. Statutory interest is 8% above the Bank of England base rate, unless your contract sets a different rate. You can also claim a fixed sum per invoice: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.
- European Union. If no payment period was agreed, interest becomes payable 30 days after the client receives the invoice. You can claim a flat €40 per late invoice, plus interest at the statutory rate, which each country sets. Business-to-business payment terms are generally limited to 60 days unless both sides expressly agree otherwise.
- United States. There’s no federal rule for business invoices. Late fees and interest come from your contract, within limits set by each state.
Not legal advice. These are summaries of the general rules. Check what applies to you and your client before you add interest or fees to an invoice.