An invoice should typically be paid within 30 days (Net 30), which is the most common standard, but terms can range from 7 to 90 days, depending on the industry and agreement. Shorter terms (like 15 days) suit small businesses needing faster cash flow, while longer terms (60-90 days) are common for large projects or corporate clients. The payment period should always be clearly stated on the invoice.
The general rule is 30 days from the invoice date. However, you can discuss this with your customer and either make it shorter or longer than 30 days. Regardless of what you agree upon, the payment terms and the due date should be clearly stated on the invoice.
According to California Code of Civil Procedure § 337(1), the statute of limitations for a written contract is four years. Under § 339(1), the limit for an oral contract is two years.
Under the Limitation Act 1980, invoices can be issued up to six years after the work was completed or the goods were delivered. While there is no legal restriction within this time frame, issuing invoices promptly is always best to avoid disputes or complications.
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.
It is, in effect a statute of limitations that applies to the payment of invoices and how long a creditor can chase a debtor for non-payment of an invoice. It might surprise many companies that unpaid invoices, under a simple contract, can be legitimately chased for up to 6 years.
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.
In general, clients cannot refuse to pay late invoices if they have received goods or services as agreed upon in the contract or agreement. Late invoicing doesn't absolve them of their payment obligation.
On the other hand, there's usually no legal requirement that bills be sent out in a timely fashion—so businesses can absolutely bill your months or even years after the fact. If it's a medical debt, there's the added confusion of insurance coverage and the challenge of understanding the bill in the first place.
There's no legal time limit that says you must invoice within a certain number of days (though doing it promptly is definitely best practice). So before you go spiraling into worst-case scenarios, remember: you're still entitled to be paid for the work you've done.
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.
Backdating invoices isn't inherently illegal—but misusing it to manipulate revenue or tax periods risks serious penalties. In the US, strict accounting standards like ASC 606 and IRS rules require invoice dates to accurately reflect when goods or services were delivered—not when paperwork is processed.
If you have an unpaid invoice, here are some steps you can take to try and resolve the situation:
Written Contracts: For debts involving written contracts, such as commercial agreements, promissory notes, or client service contracts, the statute of limitations extends to four years from the date of the breach.
Business clients (B2B)
For business transactions, the usual term is 30 days. A longer period (up to 60 days) is possible if both parties agree in writing. However, many freelancers choose shorter freelance invoice payment terms, such as 14 or 30 days, to protect their cash flow.
What to do when you haven't been paid
Debts more than 12-months old
If you have an old or outstanding bill then you are obliged to pay this. The only circumstances in which a bill can be written off is if the old debt is more than 12-months old and the supplier was at fault in the way the bill was calculated.
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.
The short answer is for most debts, that limit is 6 years.
The Act explains that you have 6 years to chase those elusive payments before they become statute barred, which means that you are unable to use legal action to provoke payment.
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.
Payment - obligations
Unless you agree a payment date, the customer must pay you within 30 days of getting your invoice or the goods or service. You can use a statutory demand to formally request payment of what you're owed.
This limitation period starts the day after the due date mentioned on the invoice. As a general rule, this deadline is set at 30, 45 or 60 days after the issue of the invoice according to the legislation in force, depending on the creditor's sector of activity.
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.
How long does an unpaid invoice remain valid for collection? Under the Limitation Act 1980, invoices remain valid for up to six years from the date the customer last acknowledged the debt or made a partial payment.
The more common payment terms are net 30 and net 60. Net 30 means that the business owner expects payment within 30 days from the invoice date. Net (number of days) is a credit term that means a business delivered a product or service first in expectation of receiving compensation at the stated date.