Payment Terms That Work: How to Get Paid Faster

You invoiced a client three weeks ago. Still no payment. You're chasing, they're promising, but your bank balance is suffering. Here's how to set payment terms that get you paid faster—and what to do when clients still don't pay on time.

Why Payment Terms Matter

Vague payment terms lead to vague payment timing. If your invoice just says "please pay" with no deadline, clients will pay when they get around to it—which might be never.

Clear terms set expectations from the start. They're not aggressive or unfriendly—they're professional. Every serious business has payment terms. You should too.

What Terms Should You Set?

For most mobile vendors, here's what works:

For Private Clients (Weddings, Parties)

• Deposit: 30-50% on booking (non-refundable)
• Balance: Due 7-14 days before the event

Why before the event? Once the wedding's over, you've lost your leverage. If payment is due "on the day" or "after the event," you're chasing during honeymoon season. Get paid before you serve.

For Corporate Clients

• Deposit: 20-30% on booking
• Balance: 14 days from invoice (or 7 days before event)

Corporate clients often have longer payment cycles (30+ days is common), but you're not a bank. Push for 14 days, or at minimum, payment before the event. If they insist on 30-day terms, factor that into your pricing.

For Regular/Repeat Clients

Once you've built trust with a client who books regularly and always pays on time, you can offer more flexible terms—maybe 14 days after the event. But this is earned, not automatic.

Make Paying Easy

Remove every barrier between "I should pay this" and money in your account.

Bank Transfer

Still the most common method. Include your account details on every invoice—name, sort code, account number, and a clear reference (their surname or booking date works well).

Card Payments

Platforms like Stripe, SumUp, or PayPal let you take card payments with minimal setup. Yes, you pay 1.5-3% in fees, but you get paid faster. Many clients prefer cards for convenience.

Payment Links

Include a "Pay Now" button or link in your invoice. Stripe, PayPal, and invoicing software like Xero offer this. One click takes them to a payment page. The easier it is, the faster they'll pay.

What About Cash?

For small amounts at markets or festivals, cash is fine. For booked events, avoid it. Cash means carrying money, making change, and having no automatic record. Bank transfer or card is cleaner.

The Psychology of Getting Paid

Small changes to how you present payment can make a big difference:

• Use specific due dates: "Due by 15th September" is clearer than "Due in 14 days"—they don't have to calculate
• Invoice immediately: Send the invoice while the event (or quote discussion) is fresh. Waiting a week signals it's not urgent
• Personalise it: "Hi Sarah, here's your invoice for Jack's 30th" feels different from a generic numbered invoice
• Express gratitude: A simple "Thanks for your booking—we're looking forward to it!" creates goodwill
• Follow up promptly: If payment is late, chase on day one, not day fourteen

What to Include on Every Invoice

A complete invoice gets paid faster because there's nothing to query. Include:

• Your business name and contact details
• Client name and address
• Invoice number and date
• Clear description of services ("Catering for 80 guests at [venue] on [date]")
• Itemised costs if relevant
• Total amount due
• Payment due date (specific date, not "net 14")
• All payment methods you accept with full details
• Reference to use when paying

When Clients Don't Pay on Time

Even with great terms, some clients pay late. Here's your escalation path:

Day 1-2 After Due Date

Friendly reminder. Assume they forgot or it slipped through.

"Hi [Name], just a quick reminder that payment of £[amount] for your booking was due yesterday. Let me know if you need the details again!"

Day 7

More direct. Express concern, request a specific response.

"Hi [Name], following up on my email last week. I haven't received payment yet and wanted to check everything's okay. Could you let me know when I can expect the transfer?"

Day 14

Firm but professional. Mention consequences if applicable.

"Hi [Name], the balance of £[amount] is now two weeks overdue. Please arrange payment by [date] to avoid any further action. If there's an issue I can help with, let me know."

Day 21+

Final notice. At this point, consider whether it's worth pursuing or writing off.

For larger amounts, you have legal options: the Small Claims Court is straightforward for debts up to £10,000. But for smaller amounts, the time and stress often isn't worth it. Learn from it and tighten terms for next time.

Late Payment Interest

Under UK law, you can charge interest on late payments from businesses (not consumers). The statutory rate is 8% plus the Bank of England base rate, plus a fixed sum (£40-100 depending on debt size).

Including late payment terms in your contracts gives you legal backing to charge interest, even if you rarely enforce it. The threat alone can motivate payment.

Sample clause: "We reserve the right to charge interest on overdue invoices at 8% above the Bank of England base rate, as permitted by the Late Payment of Commercial Debts Act."

Red Flags for Non-Payment

Watch for these warning signs early:

• Resistance to deposits: If they won't pay upfront, they might not pay later
• Constant renegotiating: Clients who haggle on every point often dispute invoices too
• Vague contact details: No landline, generic email, unclear company structure
• Promises without action: "I'll pay tomorrow" repeatedly without following through
• Complaints that seem designed to reduce the bill: Raising issues only when the invoice arrives

Trust your instincts. If something feels off during booking, insist on full payment upfront or walk away.

Terms That Protect You

Include these in your booking confirmation or contract:

• "Booking is not confirmed until deposit is received"
• "Balance must be paid [X days] before the event"
• "We reserve the right to cancel bookings with outstanding balances"
• "Late payments may incur interest at the statutory rate"

Final Thoughts

Clear payment terms aren't about being difficult—they're about being professional. Most clients appreciate clarity. They want to know what's expected and when.

Set your terms, communicate them clearly, make paying easy, and follow up promptly when payments are late. Do this consistently and cash flow problems become much rarer. You're running a business, not a charity. Get paid what you're owed, when you're owed it.