Invoices are considered late immediately after the agreed-upon due date, commonly 30 days ("Net 30") from issuance, though "due upon receipt" is also standard. While no legal maximum exists for when it can be paid, late payments usually trigger penalties, such as interest charges or legal action (statutory demand) after 30+ days.
Always clearly state the due date
Invoices must always include the invoice date as well as the due date. Setting a due date encourages the client to pay you within a certain time frame. The general rule is 30 days from the invoice date.
Public sector organisations are legally required to pay invoices within 30 days, while consumer clients have no fixed legal period – meaning you can set a fair and reasonable term yourself.
Many businesses extend net 30 terms with their invoices, which means you have 30 days to make the payment. Some even give net 60, 90, or even higher terms. This helps with your cash flow and gives you an opportunity to assess the product or service you have purchased before you pay for it.
Stick within the legal time limit for invoicing.
Although the legal time limits for invoicing are usually forgiving, you should send invoices within 30 days to maintain a steady cash flow.
A business owner can set their own payment terms when it comes to invoicing. They can choose to offer discounts for early payments and payment upfront. If no agreed-upon payment date has been established, a customer must pay a company within 30 days of receiving an invoice or the goods or service.
Getting a Client to Pay an Invoice after Nonpayment
The standard invoice timeline usually spans 30 days, often referred to as Net 30 terms, but the specific duration can vary based on industry standards, client payment processes, and specific invoice terms.
Your right to be paid
Unless you agree a payment date, the customer must pay you within 30 days of getting your invoice or the goods or service.
Some clients genuinely believe they'll have the money “next week.” Others are juggling multiple bills and hoping things magically align. Either way, they're postponing payment, not maliciously, but optimistically (and sometimes irresponsibly).
Filing a Lawsuit for Breach of Contract
If your client agreed to pay for goods or services and failed to follow through, they may be in breach of contract. You have the right to sue for the amount owed, and possibly additional damages, depending on your contract and the impact of the missed payment.
Statutory Demand
If the debtor does not pay within 21 days of receiving the demand, a creditor may then apply to the court to request bankruptcy (if an individual) or a winding up (if a company) if the debt is not paid.
The general rule is that if it becomes necessary to issue legal proceedings to recover an unpaid invoice, then the creditor must do so within the statutory time limit of six years from when the clock starts to tick.
The payment due date can be a specific date or a range of days from the invoice date, such as "net 30" or "net 60," which means the payment is due within 30 or 60 days, respectively. Payment terms: This refers to the agreed-upon terms of payment between the buyer and the seller.
It becomes late or past due the day when the deadline passes and you still have not received payment. Some companies might also set a specific number of days to differentiate the two. For example, one invoice might be considered overdue if it is 30 days past due.
If no specific payment deadline has been communicated or agreed upon, most customers are generally expected to pay within 30 days of receiving the invoice or the goods or services provided. This 30-day standard is a common default in many business transactions, but it is not legally fixed.
A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date. Credit card companies are not required to give a grace period.
Under the current guidelines, users must upload invoices within 30 days from the invoice date. If you miss this window, the IRP will reject the invoice, which means it won't be considered valid for GST compliance or for claiming input tax credit.
If your client hasn't made payment (or meaningful contact) within 30 days of the invoice becoming due, it may be time to issue a letter before action (LBA), or to pass over the matter to a debt collection agency. An LBA gives your client formal notice that legal action is imminent.
Yes, the payment due date is generally the last day you can pay a bill (like a credit card, loan, or invoice) without incurring late fees or penalties, meaning payment must be received by or on that date to be considered on time. For credit cards, you need to pay at least the minimum amount by the due date, but paying the full statement balance before the due date often saves you interest by using the grace period, notes Credit One Bank and NerdWallet.
Regarding the payment period, it is set by default at 30 days after receipt of goods or performance of services. In the context of a contract, this period can be extended up to 60 days net after the invoice issue date and 45 days end of month.
Craft a polite email or phone call reminding your client about the outstanding invoice. Be sure to include clear details like the invoice number. Make it easy for them to settle the bill by mentioning your available payment methods, such as online portals, mail-in checks, or credit card payments via a phone call.
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