Payment Terms Template

Standard payment terms templates for invoices

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Terms Configuration
Payment Terms
Payment Methods
Additional Clauses
Payment Terms
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Late Fee
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Early Discount
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Methods
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Payment Terms Document
This is a template. Consult a legal professional for your specific jurisdiction.
Common Payment Terms by Industry
IndustryStandard TermsLate FeeDepositNotes
SaaSDue on receipt / Net 301.5%/moAnnual prepay (10-20% off)Auto-renewal common
AgencyNet 30 / Net 451.5-2%/mo25-50% upfrontMilestone payments typical
E-CommerceDue on receiptN/AFull paymentRefund policy critical
FreelanceNet 15 / Net 301-2%/mo50% upfrontKill fee if cancelled
MarketplaceNet 7 / Net 14Platform holdsN/AEscrow common
EnterpriseNet 45 / Net 601.5%/moPO-basedAnnual contracts
Best Practices
Use clear deadlines — "Net 30 from invoice date" is better than "payment due in a timely manner"
Offer early payment discounts — 2/10 Net 30 incentivizes faster payment and improves cash flow
Automate reminders — Send payment reminders at 7 days before, due date, and 3/7/14 days overdue
Document everything — All payment terms should be agreed upon in writing before work begins
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