How Long Can I Wait to Pay an Invoice? A Complete Guide to Invoice Payment Terms & Late Fees

If you’ve received an invoice from a supplier, contractor, or service provider, you may be wondering:

“How long can I wait to pay an invoice?”
“What happens if I pay late?”

Paying invoices on time is essential for maintaining good business relationships, avoiding late fees, and protecting your credit score. However, the exact deadline for payment depends on the invoice terms agreed upon by both parties.

In this article, you’ll learn:

How long you have to pay an invoice (standard payment terms)
What happens if you don’t pay on time
Your legal obligations when paying invoices
How to avoid late fees & disputes
Tips for negotiating longer payment terms

Let’s break it down!

How Long Do You Have to Pay an Invoice?

The time you have to pay an invoice depends on the payment terms stated on the invoice. These terms are typically written as Net 30, Net 60, or Net 90, meaning you have 30, 60, or 90 days to make the payment.

Standard Invoice Payment Terms

| Payment Term | Meaning | Due Date Example |

|—————-|————|——————|

| Due on Receipt | Payment is expected immediately upon receiving the invoice. | Today |

| Net 7 | Payment is due within 7 days. | Invoice on March 1 → Due March 8 |

| Net 14 | Payment is due within 14 days. | Invoice on March 1 → Due March 15 |

| Net 30 (Most Common) | Payment is due within 30 days. | Invoice on March 1 → Due March 31 |

| Net 60 | Payment is due within 60 days. | Invoice on March 1 → Due April 30 |

| Net 90 | Payment is due within 90 days. | Invoice on March 1 → Due May 30 |

If no payment terms are listed, the default is typically Net 30 (30 days to pay).

What Happens If You Don’t Pay an Invoice on Time?

Failing to pay an invoice by the due date can result in late fees, legal action, and damage to your business reputation.

Consequences of Late Payments

Late Payment Fees – Many businesses charge interest or a penalty fee for overdue invoices.
Service Suspension – If you owe a vendor or service provider, they may stop providing services until payment is made.
Debt Collection & Legal Action – If an invoice remains unpaid, the creditor may hire a debt collection agency or take legal action.
Damage to Business Credit Score – Late payments can negatively impact your credit history, making it harder to secure loans.

In the UK, businesses can legally charge interest on overdue invoices under the Late Payment of Commercial Debts (Interest) Act 1998.

Legal Obligations for Paying Invoices on Time

In many countries, there are laws that protect businesses from late payments.

UK Law on Late Invoice Payments

If a business fails to pay within 30 days (unless another term is agreed upon), the creditor can:
Charge statutory interest (8% + Bank of England base rate) on overdue amounts.
Add a late payment fee (£40 to £100, depending on invoice size).

US Law on Late Invoice Payments

There is no national law requiring businesses to pay within a set timeframe.
Businesses can enforce late fees and interest if agreed upon in the contract.
Small businesses can take legal action in small claims court for unpaid invoices.

Always check your country’s business regulations regarding late payments!

How to Avoid Late Fees & Payment Disputes

Check Invoice Payment Terms Beforehand

Always confirm when payment is due and if there are any late fees.

Set Up Automatic Reminders

Use accounting software like QuickBooks, Xero, or FreshBooks to send reminders.

Negotiate Longer Payment Terms (If Needed)

If Net 30 is too soon, ask for Net 45 or Net 60 instead.
Offer to pay part upfront if more time is needed for the full payment.

Communicate If You Can’t Pay on Time

If you’re facing cash flow issues, contact the creditor ASAP to discuss a payment plan.

How to Dispute an Invoice (If Necessary)

If you believe an invoice is incorrect or unfair, follow these steps:

Review the contract – Ensure the invoice matches the agreed terms.
Contact the seller – Explain the issue and request an amended invoice.
Request written confirmation – If adjustments are made, ask for a revised invoice.
Seek legal help – If you believe the invoice is fraudulent, consult a lawyer.

Avoid ignoring the invoice—it may lead to legal trouble!

Conclusion

The time you have to pay an invoice depends on the agreed payment terms (Net 30, Net 60, etc.). If you don’t pay on time, you risk late fees, legal action, and damaged credit.

Key Takeaways: