A reasonable amount of time for an invoice to be paid is generally 30 days (Net 30), which is considered the standard for most business-to-business transactions. For smaller, straightforward projects, a 7 to 14-day window is often used to ensure faster cash flow. While 30 days is standard, terms often range from 14 to 60 days.
Common invoice timeframes for payment include 14 days, 30 days, 60 days and 90 days. Typically, the standard term of payment is 30 days or less, but you can choose any amount of time for your term. Online invoicing makes paying faster and easier for customers to pay quicker.
Terms are often expressed in “net days” which means the number of days that have passed from invoice receipt to due date. For example, net 10 terms mean that payment is due within 10 days. Net 15, net 30, net 60, and even net 90 are all standard examples of payment terms.
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.
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.
30+ days late
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.
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).
Many companies consider an ideal average payment period to be around 90 days. A payment period significantly longer than 90 days suggests that the company is taking too long to settle its credit, while a shorter average payment period indicates that the company makes prompt payments to its suppliers.
According to a PYMNTS Intelligence report, nearly 60% of invoices are paid late, with almost half outstanding for more than 90 days. These delays don't just create inconvenience for your accounting team, they threaten your business's survival.
From a legal perspective, defined payment terms protect both parties by documenting the agreed-upon timelines, methods, and consequences for late or missed payments. This ensures enforceability and reduces the likelihood of disputes.
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.
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 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.
30-day e-invoicing upload rule: Businesses with an AATO of ₹10 crore or more must upload their e-invoices to the IRP within 30 days of the invoice date (effective from April 1, 2025), after which the system will reject them.
Setting an Appropriate Late Fee Amount for Rent
The late fee should be fair and reasonable, typically falling between 5% and 10% of the total monthly lease amount. Landlords should clearly communicate the late fee amount, due date, and when the fee will be applied to the tenant, ensuring that no exceptions are made.
Getting a Client to Pay an Invoice after Nonpayment
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.
Inconsistently sending invoices – for example, by delaying them or otherwise sending them on a different date each month – is an easy mistake to make. It's understandable, because monthly dates don't fall on the same day of the week. Many will simply pick a Monday morning or a Friday afternoon, and get to work.