People often take a long time to pay invoices due to cash flow constraints, internal administrative bottlenecks, or intentional strategies to hold onto cash longer. Common reasons include forgotten invoices, missing purchase orders, inefficient approval processes, or simple procrastination. These delays often result from a combination of financial mismanagement, disputes, or a, "I'll pay it later," mentality.
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.
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. However, you can discuss this with your customer and either make it shorter or longer than 30 days.
Not every client is late because of emotional avoidance or cash flow trouble. Some deliberately delay payment as a business strategy. By controlling when they pay you, they assert control over the relationship. It's subtle, but it sends a message: We set the terms.
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.
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+ 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.
Wanting to Maintain Control of Cash Flow
Some companies delay invoice payments because they want to keep money in their bank accounts for longer. Preserving their cash flow and treating your business like a free credit provider is their aim here.
One 30-day late payment can hurt your credit scores, even if it only happens once. Payment history is the most influential factor in determining your credit score, accounting for roughly 35% of your FICO® Score Θ , the score used by 90% of top lenders.
Dear [Contact Name], I apologize that we have not yet been able to fill payment for invoice [Insert Invoice Number]. We are currently experiencing [cash flow issues, etc.] that are preventing us from being able to make payments in a timely manner.
Although the legal time limits for invoicing are usually forgiving, you should send invoices within 30 days to maintain a steady cash flow. Electronic signatures can help you keep track of your invoices. Requesting digital signatures is fast, so you can do it before forgetting about the invoice.
If you have an unpaid invoice, here are some steps you can take to try and resolve the situation:
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.
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.
Here are the top 8 tips to get your invoices paid faster:
Payment terms: Unless you've agreed otherwise, customers legally have 30 days to pay from the invoice date or from when the goods/services are received. You're entitled to charge interest on late payments, but these charges must be clearly outlined on your invoice or in your contract.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Once a payment is 30 days past due, it can be reported to credit bureaus. Your credit score could drop 50–100 points or more, depending on your credit history. Interest and late fees continue to accrue. Your account may be turned over to collections or the lender may begin legal action.
Late payments happen for various reasons.
Customers tend to forget, mistakes on invoices arise, technology issues arise, and economic uncertainties lead clients to request more time. If you're dealing with checks, there's another set of possible delays from when the check is sent to when it's processed.
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.
Getting a Client to Pay an Invoice after Nonpayment
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.