Invoice Terms and Conditions: Examples You Can Adapt

The terms on an invoice remind the customer of what you agreed. They're not the place to introduce new conditions. The real contract is your quote, proposal or agreement, and the invoice repeats the parts that matter at payment time.

Keep it short. Three to six lines covers most businesses.

What to include

1. Payment terms: when payment is due
2. Accepted payment methods and the reference to use
3. Late payment: fees or interest, if you charge them
4. Disputes: how and by when to raise a query
5. Ownership or rights that pass on payment (for goods, designs, photos, code)
6. Deposits and cancellations, if relevant

Example wording

Payment terms

Payment is due within 14 days of the invoice date. Please use the invoice number as your payment reference.

Late payment (US)

Balances unpaid after the due date are subject to a late fee of 1.5% per month, or the maximum permitted by law if lower.

Late payment (UK B2B)

We reserve the right to claim interest and compensation on late payments under the Late Payment of Commercial Debts (Interest) Act 1998.

Queries

Please raise any questions about this invoice within 7 days of receipt. Undisputed amounts remain payable by the due date.

Ownership of goods

Goods remain the property of [Business] until paid for in full.

(This is a "retention of title" clause. It's more effective when it's also in your terms of sale.)

Creative work and rights

On receipt of full payment, the client receives [full rights to use / a license to use] the final deliverables as described in the proposal dated [date]. Working files remain the property of [Business].

Deposits

The deposit paid is non-refundable once work has commenced or materials have been ordered.

Returns (retail)

Returns accepted within 30 days with proof of purchase. Custom orders cannot be returned unless faulty.

Bank details security

We will never change our bank details by email. If you receive a request to do so, please call us on [number].

Examples by business type

Freelancer (services)

Payment due within 14 days. Late payments incur a 1.5% monthly fee. Final files are released on receipt of payment. Thank you for your business.

Trades

Payment due on completion. All work is guaranteed for 12 months from completion; guarantee applies only once the invoice is paid in full. Materials remain our property until paid for.

Consultant (UK B2B)

Payment due within 30 days. Expenses charged at cost, receipts available on request. We reserve the right to claim statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998.

Photographer

Balance due 14 days before the event date. Images licensed for personal use only; commercial use requires written permission. Copyright remains with the photographer.

What to avoid

• New terms that weren't agreed. They may not be enforceable, and they annoy clients.
• Excessive fees that may breach consumer or usury laws.
• Walls of text. If you need detailed terms, link to them or attach them to your first invoice.
• Contradictions with your contract. The contract usually wins, and the contradiction weakens your position.

This is general guidance, not legal advice. For contracts and terms of business, especially retention of title or consumer terms, a short review by a lawyer is money well spent.

Where to put terms on an invoice

At the bottom, after the totals and payment details, in normal-sized text. Small grey print looks like you're hoping nobody reads it. In the generator, the "Terms & conditions" box prints under a clear heading on every template, next to your payment instructions and notes.

If your full terms of business are long, keep the invoice to the essentials and add a line such as:

This invoice is subject to our terms of business, supplied with our quote dated 2 September 2026.

Frequently asked

Are terms on an invoice legally binding? The terms that bind are the ones agreed when the contract was made, usually in your quote, proposal or signed agreement. Terms that first appear on an invoice are much weaker. Repeat agreed terms on the invoice; don't introduce new ones there.

Do I need terms on every invoice? Payment terms, yes. Everything else is optional but helpful, especially late payment wording.

Can I copy terms from a big company's invoice? You can use them as inspiration, but make sure every line fits your business, your country and what you actually agreed with the client.