INVOICE PAYMENT TERMS
Best Payment Terms to Include on an Invoice
Good payment terms remove uncertainty. They tell the customer exactly how much to pay, when payment is due, which payment channel to use and what happens if circumstances change.
1. State an exact payment due date
Show the actual calendar date instead of relying only on wording such as “Net 14.” You can include both: Payment due within 14 days, by 13 September 2026. Exact dates reduce misunderstandings.
2. Explain deposits clearly
If work begins after a deposit, state the percentage or amount, when it is due and what triggers the balance.
Deposit on approval 50%
Balance due On completion
Work begins After deposit clears
3. Define instalment or milestone payments
For longer projects, connect each instalment to a date or deliverable. Avoid vague wording such as “pay gradually.” State the amount or percentage due at every stage.
On approval 40%
After first delivery 30%
On final completion 30%
4. List accepted payment methods
Specify whether the customer should pay through M-Pesa, bank transfer, card or another agreed method. Include the correct till or paybill number, account reference or bank details. Never include a password, PIN or other secret credential.
5. Require a useful payment reference
Ask the customer to use the invoice number or another unique reference. For example: Use INV-0087 as the M-Pesa or bank-transfer reference. This makes reconciliation faster.
6. Explain how partial payments are handled
If instalments are accepted, state that each confirmed payment will be credited against the invoice and that the remaining balance stays payable by the agreed deadline.
7. Address late payments carefully
State when an invoice becomes overdue and how you will follow up. If you intend to charge interest, collection costs or late fees, the term should be lawful, reasonable and agreed before invoicing—not introduced unexpectedly afterward. Obtain professional legal advice for enforcement wording.
8. Clarify disputed amounts
Tell the customer to raise billing questions promptly and identify the invoice and disputed item. Where appropriate, require the undisputed portion to be paid by its due date while the issue is reviewed.
9. Connect payment to delivery or ownership
If final files, products, licences or ownership transfer only after full payment, state that in the quotation or contract and repeat it briefly on the invoice. Ensure the wording fits the type of transaction and applicable law.
10. Include contact information
Provide the email or phone number customers should use for payment confirmations, statements or invoice corrections. Fast clarification can prevent avoidable delays.
Simple payment-terms template
Payment due: Within 14 days of the invoice date, by [DATE].
Payment method: Pay via M-Pesa [TILL/PAYBILL] or bank transfer to the account shown above.
Reference: Use invoice number [INVOICE NUMBER].
Partial payments: Confirmed payments will be credited to this invoice; any remaining balance remains due by the stated date.
Questions: Report invoice queries promptly to [EMAIL/PHONE].
Final checklist
- Exact due date
- Deposit or milestone schedule
- Accepted payment channels
- Invoice payment reference
- Partial-payment treatment
- Overdue and reminder process
- Dispute contact and timeline
- Delivery or ownership conditions where relevant
Save your standard payment terms in Quote Desk
Customise company terms, place them at the bottom of each invoice and track every payment credit against the balance due.
Create an invoice free