Payment Terms Generator

Most UK tradespeople use payment terms of 14 or 30 days from the invoice date. Some require payment on completion of work. Whatever terms you choose, make sure they are clearly stated on every invoice.

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest of 8% plus the Bank of England base rate on late commercial invoices. You can also claim a fixed compensation amount: £40 for debts up to £999.99, £70 for debts up to £9,999.99, and £100 for debts of £10,000 or more.

Early payment discounts (e.g. 2% off if paid within 7 days) can improve cashflow but reduce your margin. They work best for larger invoices where the discount is meaningful to the customer. Consider your cashflow needs before offering them.