What Are the Standard Payment Terms for UK Businesses?

For UK businesses, 30-day payment terms are widely used for business-to-business (B2B) invoices, although companies can generally agree shorter or longer terms with their customers.

Common payment terms include payment upfront, 7 days, 14 days, 30 days and 60 days.

What Are the Most Common UK Payment Terms?

Typical terms include:

• Payment upfront – paid before goods or services are supplied
• Net 7 – payment within 7 days
• Net 14 – payment within 14 days
• Net 30 – payment within 30 days
• Net 60 – payment within 60 days

The UK Small Business Commissioner describes 30 days from receipt of invoice as typical payment terms.

Is Net 30 Standard in the UK?

Net 30 is one of the most common payment terms for UK B2B transactions.

For example:

Invoice date: 1 September
Payment terms: Net 30
Due date: 1 October

For clarity, businesses should include an exact due date rather than relying only on wording such as "Net 30."

Can a UK Company Set Its Own Payment Terms?

Yes.

UK businesses can generally set and agree their own payment terms with customers, including requesting payment upfront or offering early-payment discounts.

For example, a company could use:

New customers → Payment upfront

Small invoices → 7 or 14 days

Regular B2B customers → 30 days

Large corporate customers → 30 or 60 days

The terms should ideally be agreed before goods or services are supplied.

What If No Payment Terms Are Agreed?

If no payment date has been agreed, payment generally becomes due within 30 days of the customer receiving the invoice or the goods or services, whichever is later.

This makes 30 days an important benchmark under UK late-payment rules.

Can Payment Terms Be Longer Than 60 Days?

For business-to-business transactions, an agreed payment date should generally be within 60 days.

A longer period can be agreed, but it must be fair to both businesses.

What About Public-Sector Customers?

Public-sector payment rules are different.

Public-sector contracts generally include 30-day payment terms, and these requirements can also extend through relevant public-contract supply chains.

What Payment Terms Should a Small UK Company Use?

For many small UK companies, 14 or 30 days can be practical.

Shorter terms can improve cash flow, while larger customers may expect 30-day terms.

For new customers or large projects, businesses may also consider:

50% deposit → Work begins → Remaining 50% due on completion

The appropriate arrangement depends on the type of business and commercial risk.

What Should I Put on the Invoice?

Keep the wording simple:

Payment Terms: Net 30
Payment Due: 30 September 2026
Payment Method: Bank transfer
Payment Reference: INV-001

For international invoices, also clearly state the payment currency, such as GBP, EUR or USD.

Can a UK Company Charge Interest for Late Payment?

For qualifying B2B transactions, businesses may be entitled to charge statutory interest and claim certain debt-recovery costs when invoices are paid late. GOV.UK late commercial payment guidance

Final Answer

There is no single mandatory standard payment term for every UK business, but 30 days is a common B2B standard.

A simple approach is:

New customers → Upfront or Net 14
Regular customers → Net 30
Large corporate customers → Net 30–60

Whatever terms you choose, agree them with the customer and put an exact payment due date on every invoice.

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