Two versions, the same terms
The invoice version reminds; the contract version agrees. Terms printed on an invoice arrive after the work is done, which is too late to agree anything new. A deposit, a discount or a late fee needs to be in the contract or the quote the client accepted, before the work starts. Both versions are built from the same choices, so they cannot say different things. The contract version calls the two sides "the Supplier" and "the Client"; change those to whatever names your contract uses.
Put the due date on the invoice as a date as well as a term. "Net 30" leaves the client to count; a date does not. The invoice due date calculator works it out for any of these terms.
Early payment discounts
2/10 Net 30 means 2% off if the invoice is paid within 10 days, otherwise the full amount within 30. The sheet shows what that costs you as a yearly rate, worked out the way the early payment discount calculator does it. For 2/10 Net 30 it is about 37% a year, which the early payment discounts guide explains. The wording limits the discount to payment received within the period, because a discount deducted from a payment made on day 20 is awkward to refuse unless the terms already say no.
Late payment charges
An interest rate or a late fee that you set comes from your terms, so it only applies if the client agreed to it. Late payment fees covers how a flat fee differs from interest. The statutory options are different: in the UK and the EU, a business that pays another business late can owe interest and a fixed sum even when the contract does not mention them. Neither applies to consumers, and a rate agreed in the contract generally takes the place of the statutory one.
| Interest | Fixed sum | Source | |
|---|---|---|---|
| United Kingdom | 8% a year above the Bank of England base rate, simple | £40 on a debt under £1,000, £70 up to £9,999.99, £100 on £10,000 or more | GOV.UK, s.5A of the 1998 Act |
| European Union | The reference rate plus at least 8 percentage points, simple | At least €40, set in national law | Directive 2011/7/EU, articles 2 and 6 |
The generator does not print today's rate. Both schemes add a margin to a central bank rate that changes, so the wording names the law rather than a figure that would go out of date. The United States, Canada, Australia and New Zealand have no national scheme like these for business debts; some states and provinces have their own rules. There, choose a rate or a fee of your own, or nothing.
What this generator does not do
- It is not legal advice. The wording describes common practice. Whether a charge can be enforced depends on your contract, on where you and your client are, and on whether your client is a business. Check with someone qualified where you trade before you rely on it.
- It does not choose the term for you. Choosing payment terms covers which term suits which client, and the three things that move the day you get paid more than the term does.
- It does not keep anything. Nothing is written to your browser's storage and nothing you type is sent to us.
Related
Paste the invoice version into the "Notes / terms" box of the invoice generator. If a client pays late anyway, the payment reminder email generator writes the follow-up, and the late payment interest calculator works out what is owed. For the deposit itself, deposits and progress billing covers how much to ask for and how to word it.
Last updated 3 October 2026