An invoice should generally be paid within 30 days (Net 30) if no other terms are specified, as this is the common industry standard, though payment terms can range from immediate ("Due on Receipt") to longer periods like 60 or 90 days, depending on the industry, client agreement, and business needs. Always check the invoice for a specific due date or terms like "Net 15," "Net 30," or "Due upon receipt".
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.
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.
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.
Common types of invoice payment terms
Net 30, 60 or 90: This means the full payment is due within 30, 60 or 90 days after the invoice date.
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.
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.
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.
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.
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.
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).
For manual processing, it typically takes 14 to 21 days to complete due to invoice data extraction, validations, and approvals. Automated systems significantly reduce this time, processing invoices in as little as 3 to 5 days, depending on the efficiency of the workflow and tools used.
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.
Getting a Client to Pay an Invoice after Nonpayment
The interest you can charge if another business is late paying for goods or a service is 'statutory interest' – this is 8% plus the Bank of England base rate for business-to-business transactions.
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.
How to chase late payments
Most companies expect invoices to be paid in around 30 days, so anything around this figure should be considered relatively normal.
12 months or less is generally considered a good CAC payback period. However, this number varies significantly by industry, company size, and annual contract value (ACV), so it's important to be aware of peer benchmarks.
What are reasonable payment terms? Reasonable payment terms are typically Net 30 or Net 30 end of month, meaning payment is due 30 days after invoice. For some clients or industries, Net 45 or Net 60 may also be acceptable, as long as both parties agree and cash flow remains healthy.
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.
Here are the most common methods:
Handwritten invoices can be a practical choice for small businesses, particularly when dealing with low transaction volumes, wanting to add a nice personal touch to client interactions, or working with limited resources. They offer a cost-effective, simple, and immediate billing solution.