Definition
What it means
Payment terms are the rules you set for when an invoice must be paid. They live on the quote (so the customer agrees up front) and the invoice (so the customer is reminded). Clear terms get you paid faster. Vague ones invite excuses.
Common payment terms
On completion: paid before the work is signed off. Standard for residential service work. Net 7: paid within 7 days of invoice date. Common for residential and small commercial. Net 14 and Net 30: 14 or 30 days. Common for commercial accounts and procurement-led customers. 50 percent deposit, balance on completion: standard for any job with material outlay.
What to include with payment terms
Banking details with the invoice number as the reference. Late-payment policy (a fee or interest charge after a stated grace period). The acceptable payment methods (bank, card, EFT). For commercial accounts, a credit application sets the relationship.
How QuoteGenio handles payment terms
Set your default payment terms once in business settings, and every quote and invoice carries them. Override on a per-document basis when needed.
Related terms
Other glossary entries you might want next
Closely related terms in the trades-finance vocabulary, with the same plain-English treatment.
Invoice
A formal request for payment after work is done. Lists what was delivered, the price agreed, banking details, and the due date.
Deposit
An upfront payment the customer makes on acceptance, typically 20-50 percent. Covers your material outlay and commits the customer to the booking.
Progress Payment
A staged invoice issued during a longer project, billed against milestones or a percentage-complete basis rather than waiting for the entire job to finish.
Put it to work
Templates that use this concept
Free quote and invoice templates where this term naturally appears.
Testimonials
Trusted by tradespeople
Real tradespeople using QuoteGenio to quote and invoice from their phone, with the trades-finance vocabulary you've just read about.
“The templates look incredibly professional. My clients in Italy are always impressed by the branding. Huge time saver.”
Sofia Ricci
Interior Designer · Milan
“Converting a quote to an invoice in one click saves me so much time. Payment tracking is brilliant. I can see immediately who still owes me.”
Thabo Nkomo
HVAC Technician · Midrand
“Switched from a clunky desktop app. QuoteGenio is faster, simpler, and my crews actually use it. Payments tracking is a huge plus.”
Michael O'Brien
General Contractor · Denver, CO
Read more
Articles that go deeper on this topic
Long-form posts from the QuoteGenio blog that put this concept in real-world context.
5 Ways Tradespeople Can Get Paid Faster
Late payments hurt cashflow more than almost anything else. These five habits help tradespeople get paid on time, every time.
What a Free Quoting Tool for Tradespeople Should Do
Not every free quoting tool for tradespeople earns its keep. A plain checklist of what to look for, what to avoid, and what tradies actually use.
Convert a Quote to an Invoice in One Tap, No Retyping
The one-tap convert flow eliminates the retyping, the duplicate invoice numbers, and the mismatched line items that cost tradies hours each week.
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