Tips on Writing Proper Invoice Payment Terms

Many businesses don’t pay much attention to writing invoice payment terms. It is simply just another thing on their to-do list. However, in some cases, improper use of words in invoice payment terms can cause serious problems.

Invoice Payment Term represents the time frame in which a client has got to pay for products and services that have been given by the supplier. Every business depends on this constant flow of cash so that it can pay the employees, bills and many other things. Among them the ones that include further business – expansion, obtaining more products or services etc.

Improper invoice payment terms can lead to delayed payment, which is not good for the business. Small businesses suffer from this the most as they require that money for purchasing materials needed for the end product. And most of the time they don’t have a lot of funds stacked for emergencies. This can seriously disrupt any business.

If you have already faced this problem or you have fears of facing it, here are some tips on how to create that perfect invoice payment term.

Use the number of days instead ‘net’.

Using ‘net’ is common in business. It means that the payment is due in a set number of days. For example ‘net30’ means that the payment is due in thirty days from the date on the sales bill. In addition, even though using uniform terms, some clients may not be sure what it means. Even if they know what it means, it will be much better and easier to understand if you use ‘days’ instead of ‘net’.

This clarifies both your demands and what the client needs to do. It will most certainly result in a lot of paid invoices. If you need help writing more clear statements, you can use some of the free tools available online like Writing Populist or Studydemic.

The best thing to do is to avoid all the confusion and state what you need in clear, understandable sentences and you’ll be satisfied with the result.

Be polite in your invoice payment terms.

When requesting payment, it is easy to come off as rude and demanding. Especially if you are not skilled at doing it properly. Invoice payment terms matter for more reasons than just receiving money on time. It is the last conversation you’ll have with your client and you’ll want to leave a good impression if you want to do business again with them or get a good review from them.

This is why you should insist on politeness. Be firm but nice, demand the money but in a polite way. Your client should know that you are serious about the time frame for the payment. But also that you want to have a good and friendly relationship. Even if you haven’t had the best experience working with them, insist on maintaining a good communication. As one bad review of your business will trump any good one.

Say things like ‘please make this payment by this time’, ‘thank you for a wonderful cooperation’, ‘we hope that you didn’t have any troubles with our product/services’ etc. This will improve the image of your business a lot. You can find a helpful list of free business writing resources at Uktopwriters.

Format and itemize your invoice payment terms properly.

One of the best things that you can do for you and your business is to itemize and format your invoice payment terms properly. This will give you a much better chance of getting paid in time.

You should list all of the products and services that your client has requested, and describe them thoroughly. Description of what they looked like, what was the price per unit, what is a total price, taxes etc. This will make your invoice perfectly clear to your client. They will know what they are paying for and your invoice will get paid.

If you are still not sure how to properly format your invoice payment terms, there are plenty of tools like Resumention that was praised even by Huffington Post here.

Check for grammar or spelling mistakes.

Not only can this seem unprofessional, it can also cause you to lose money if anything of importance is misspelled. After you are done with writing your invoice, go through it again before you send it. These mistakes can be sneaky and it’s easy to simply overlook them.

Most people are not very good self-editors, so they employ free online tools and services like LetsGoAndLearn or Essayroo that also provide for plagiarism guides and copywriting services to their clients.

Invoice payment terms are one of the last things you’ll send to your client and probably the last conversation you’ll have. It is a good idea to come off as educated and polite than someone who can`t spell properly.

Include late payment fees and incentives if they pay early.

This is one of the best ways to get an invoice payment on time or a lot earlier than you normally would. People don’t like paying for extra fees and they love paying less for what they requested.

Late payment fees will serve a few causes. For one, it will remind your client of the payment due date. It’s a lot harder to forget something if it’ll take money away from you. Late payment fee will compensate for everything that you have lost during the time you weren’t paid and it will improve the time of the entire process.

If you want to entice your clients to pay for their products and services, a good approach might be the one with the incentives if they pay early. This will show that you have good intentions and that you want to have a good cooperation with them.

Both of these will result in better communication and your payments mostly paid on time.

Give your clients some payment options.

We live in an era full of options when it comes to paying for things. There is no reason that you should limit your client to check or cash payment only. So many services nowadays online are much safer and faster than the traditional methods.

Include a lot of payment options. This way your client will have the ability to pay you from the comfort of their home. And he will not delay your payment just because he didn’t have the time to go to the bank

– explains Michael Carlton, a Communication Manager at Ukwritings and Huffingtonpost writer.

You’ll be much happier too as you’ll receive faster payments. Also, it will all be a lot safer since paying online cancels out the possibility of a fraud.


Communicating with clients properly is one of the most important things in any business no matter how big or small. It gives amazing results and you’ll be much happier knowing that you were polite and helpful.

Both the clients and the businesses depend on good communication if they want to keep working. If you insist on maintaining a relationship with your clients, proper invoice payment terms writing is something that you should insist on too.

If you are polite and clear in your demands, the client will feel a lot better when paying. Using terms that are easy to understand, offering a lot of payment options, making sure that your grammar and spelling are correct will all affect the image of your business positively.

Freddie Tubbs
Freddie Tubbs is a financial writer at Oxessays. He is writing columns at the Vault and Revieweal blog, and is the author of Academadvisor blog for students. Follow him on Twitter.
Freddie Tubbs

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