Invoice payment terms in the UK - examples and clauses

• Cash flow challenge: I’m not sure what payment terms to put on my invoices, and I want to set them up properly so customers pay me on time without damaging relationships.

• Perfect for: Small and medium businesses looking to set clear payment terms that protect cash flow.

Novuna helps businesses put the right payment terms in place and supports cash flow with tailored funding solutions. We compare providers and ensure you have access to financial tools that keep your business running smoothly.

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What are invoice payment terms?

Invoice payment terms are the conditions you set for how and when your customer must pay you. They act as the rules of your contract, covering deadlines, methods of payment, and any charges for late settlement. Clear terms can make the difference between healthy cash flow and chasing overdue invoices.

Standard invoice payment terms in the UK

Here are the most common terms used by UK businesses:

• Immediate payment - payment is due as soon as the invoice is received

• 7 days - often used for short projects or small suppliers

• 30 days - the most common standard across the UK

• 60 or 90 days - usually applied by larger companies or in construction and manufacturing supply chains

Example clauses you can use

When drafting invoices, it helps to add plain clauses that make your expectations clear. For example:

• Due on receipt: “Payment is due immediately upon receipt of this invoice.”

• 30-day terms: “Payment is due within 30 days of the invoice date.”

• Late payment interest: “If payment is not received within 30 days, interest may be charged on the overdue amount at [X]% per month.”

• Part payment upfront: “A deposit of 25% is due before work begins, with the remaining balance due within 30 days of completion.”

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Why clear payment terms matter

• They set expectations upfront

• They reduce disputes over timing and methods

• They give you stronger ground if you need to chase or escalate

• They help forecast incoming cash flow more accurately

How to make terms work for your business

• Match terms to your industry standard but avoid being too lenient

• Be upfront with new clients about how and when you expect payment

• Use staged or milestone payments for larger projects

• Make sure your invoice template always includes terms clearly

How Novuna Business Cash Flow helps

Even with the best terms, some clients still pay late. Novuna helps businesses bridge the gap with solutions like invoice finance, working capital loans, and credit control support. Whether you need flexibility for a big project or a safety net against late payment, we make sure your business keeps moving.