Legal Payment Terms for Invoices: Business Guide

Payment terms say when an invoice has to be paid, such as within 30 days of the invoice date. Between businesses, they're set in the contract or on the invoice. Places such as the UK and the EU also have laws on business payments, covering when a payment counts as late if no date was agreed, or how long a payment period can be. Both are quoted below. Rules differ by country and, in the US, by state, so check local rules and ask a lawyer before relying on any term.

Billed publishes this page. It's general information, not legal advice. The UK points are quoted from the GOV.UK guide Late commercial payments: charging interest and debt recovery (last updated August 10, 2016) and the EU points from Directive 2011/7/EU on combating late payment in commercial transactions (Official Journal of the European Union, February 23, 2011), both opened on October 30, 2026.

What payment terms say

Payment terms set the due date, and can also cover what happens if payment is late. For forms such as net 30, see invoice payment terms explained and what is net 30. Whatever you agree on, write the due date on the invoice as a calendar date.

UK: when a business payment is late

The GOV.UK guide says:

• "If you agree a payment date, it must usually be within 30 days for public authorities or 60 days for business transactions."
• "You can agree a longer period than 60 days for business transactions - but it must be fair to both businesses."
• "If you do not agree a payment date, the law says the payment is late 30 days after either:" "the customer gets the invoice" or "you deliver the goods or provide the service (if this is later)".

The same guide covers statutory interest and debt recovery costs on late payments; see how to add late fees to invoices.

EU: the late payment directive

Directive 2011/7/EU sets rules that EU countries apply through their own national laws. For transactions between businesses, Article 3 says:

• When no payment date is fixed: Article 3(1) makes interest depend on two conditions: "the creditor has fulfilled its contractual and legal obligations" and "the creditor has not received the amount due on time, unless the debtor is not responsible for the delay". Where those conditions are met and "where the date or period for payment is not fixed in the contract", Article 3(3) says "the creditor is entitled to interest for late payment" after time limits that include "30 calendar days following the date of receipt by the debtor of the invoice or an equivalent request for payment".
• The length of agreed terms: "Member States shall ensure that the period for payment fixed in the contract does not exceed 60 calendar days, unless otherwise expressly agreed in the contract and provided it is not grossly unfair to the creditor within the meaning of Article 7."

Because each country applies the directive through its own law, check the national rules of the country concerned, and ask a lawyer.

The US and other places

This page doesn't quote US rules. Payment rules and late-fee rules vary by state and by country, so check local rules and ask a lawyer before you set terms or add a late fee. For a written late-payment policy, see late payment policies.

Sample: when a UK invoice becomes late (no agreed date)

The business, dates and invoice here are a sample, invented for this example.

A UK design studio and its business client didn't agree on a payment date. The studio finished the work on February 25, 2026, and the client received the invoice on March 2, 2026.

1. The two dates in the GOV.UK rule: the customer got the invoice on March 2, 2026; the service was provided on February 25, 2026.
2. The later date: March 2, 2026.
3. 30 days after it: March 2, 2026 + 30 days = April 1, 2026. March has 31 days, so 30 days after March 2 is April 1.

So in this sample, the 30 days in the GOV.UK rule run from March 2 to April 1, 2026. If the studio and its client had agreed on a payment date, the GOV.UK points on agreed dates above are the ones to check. Ask a lawyer how the rules apply to a real invoice.

Where Billed fits

Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay." It also says: "Payment reminders can be customized." For repeat billing, see recurring invoices. When a payment is late, see how to follow up on unpaid invoices, and for keeping invoice records in order, the invoice numbering guide.

Related Articles

• Invoice Payment Terms Explained
• What Is Net 30?
• How to Add Late Fees to Invoices
• Late Payment Policies

Frequently Asked Questions

What are legal payment terms for invoices?

The payment terms you agree on with a client, such as the due date, together with any law that applies to business payments where you are. Rules differ by country and, in the US, by state, so check local rules and ask a lawyer.

When is a UK business payment late if no date was agreed?

The GOV.UK guide says: "If you do not agree a payment date, the law says the payment is late 30 days after either" "the customer gets the invoice" or you "deliver the goods or provide the service (if this is later)".

Is there a maximum payment term in the EU?

Directive 2011/7/EU says: "Member States shall ensure that the period for payment fixed in the contract does not exceed 60 calendar days, unless otherwise expressly agreed in the contract and provided it is not grossly unfair to the creditor…" Each country applies this through its own law.

Can I enforce the payment terms on my invoice?

That depends on your contract and the law that applies, which this page doesn't cover. Ask a lawyer before you take action on an unpaid invoice.