Legal Payment Terms for Invoices: Business Guide

When you start your own business, you face new challenges. How do you create an invoice step by step? What mandatory information should be included on this document to ensure it’s in order? What payment deadline should you specify? To answer this last question, here are the possible payment deadlines for successful invoicing. 

Payment deadlines: what the law says

The law regulates the invoicing of professionals to ensure a balanced and transparent commercial relationship.

Payment deadlines for an invoice addressed to an individual

When an invoice is intended for an individual, the payment deadline is not regulated by law. 

However, several common practices exist:

• Payment is often required upon delivery or when the service is performed.;
• other payment terms agreed between you and the individual: payment in installments, deposit before delivery, etc.

Payment deadlines for an invoice sent to a professional

For an invoice issued to another professional, the law more strictly regulates payment deadlines. 

As a general rule:

• The standard payment period is 30 days after receiving the goods or service;
• This period can be extended to 60 days from invoicing or to 45 days end of month.

For the period of 45 days from the end of the month, there are 2 calculation methods:

• For the 45-day end-of-month period, there are two calculation methods. One method is to add 45 days to the end of the month when the invoice was issued. For example, an invoice issued on May 10 must be paid before July 15.

How to Choose the Right Payment Terms for Your Invoices

Running a business involves managing various numbers.

When setting payment terms on your invoices, it is crucial to consider: 

• your cash flow;
• your client’s financial capabilities;
• the nature of the business relationship.

Some concrete examples:

If you’re a freelancer just starting out you probably need a quick cash flow. In this case, prioritize short payment terms.

If your client is a small business with limited resources, a longer payment term may be beneficial in strengthening your business relationship.

And if you work with regular clients and your cash flow is stable, you may want to consider more flexible payment terms. This will help you negotiate better terms in upcoming contracts.

Payment deadlines & invoicing: the recap

Now you know how to set the payment deadline on your invoices : 

• the legislative framework gives you different possibilities between payment on receipt, or settlement in 30, 45 or 60 days;
• the setting of the deadline must be based on concrete elements specific to the financial capacities of the different parties.

To invoice your customers quickly and easily, the Agiled invoicing tool will be your best ally. 

Frequently Asked Questions

What Are the Legal Time Limits for Paying Professional Invoices?

The standard legal payment period for an invoice to a professional is 30 days after receiving goods or services. However, this period can be extended. It can be 60 days from the invoicing date. Alternatively, it can be 45 days from the end of the month.

How do I set the payment term that best suits my business?

The choice of payment term depends on many factors: the nature of your activity, your business model, the financial situation of your customers, etc. You can consult an accountant or financial advisor to help you determine the payment terms best suited to your business. 

What happens if a customer does not meet the agreed payment deadline?

If your customer fails to meet the agreed payment deadline, you have the right to claim late payment penalties. The conditions of application and the interest rate of these penalties must be specified in your general terms and conditions of sale (GTC) .