What payment terms should a sole trader use

Choosing the right payment terms as a sole trader depends on your cash flow needs, the size of the job, and whether you are working for domestic or commercial clients. Setting clear expectations before you start work is the best way to ensure you are paid on time without awkward conversations.

Should you use 7, 14 or 30 day payment terms

The standard terms you choose set the tone for how your customers view your business. Many sole traders default to thirty days because they think it is what larger businesses expect, but this can leave your personal bank account strained while you wait for money to land. For domestic work, shorter terms are almost always better for your cash flow.

Seven-day terms work well for smaller domestic jobs like a routine call-out or a half-day plumbing repair. The work is fresh in the customer's mind, and they can easily clear the balance within a week. Fourteen-day terms suit larger domestic projects like a bathroom refit where the bill is higher and the customer may need a little breathing room to arrange a bank transfer.

Thirty-day terms should generally be reserved for commercial clients, main contractors, or regular property maintenance accounts that run on official company credit cycles. Even then, check your contract terms carefully and ensure your invoices are submitted correctly the moment the work is finished. If you use invoicing tools that let you send professional PDFs straight from your phone, you remove the delay between finishing the job and the clock starting on your payment terms.

• 7 days: Best for small domestic call-outs, repairs, and minor maintenance jobs under a few hundred pounds.
• 14 days: Ideal for standard residential work lasting a few days, such as a boiler swap or small electrical rewire.
• 30 days: Reserved mainly for commercial work, main contractors, and verified business accounts with formal billing departments.

How to set up deposits for materials and large jobs

Your payment terms should never start when the job finishes; they should start the moment you commit your time and money. For any job involving expensive materials or taking more than a couple of days, asking for a deposit is standard trade practice. This protects you from being out of pocket if a customer changes their mind or delays payment.

For a bathroom refit costing say two thousand pounds for materials and labor combined, asking for a percentage upfront covers your merchant bill before you pick up a single tile. Make sure your deposit amount and the schedule for interim payments are clearly written into your initial quote so there are no surprises when the first invoice arrives.

When a customer accepts your quote and pays the deposit, you can transition the project into an active job in your schedule. Clear deposit terms weed out time-wasters who are not serious about going ahead, leaving you free to focus on paying customers.

• Take a deposit covering the cost of materials before you order anything from the merchant.
• Break stage payments down for longer jobs, such as a milestone payment at the halfway mark.
• State deposit terms clearly on your initial quote so the customer expects to pay before work begins.

How to write payment terms clearly on your quotes and invoices

Putting your payment terms in small print at the bottom of an invoice is rarely enough to ensure prompt payment. The terms need to be visible right from the start, appearing on your quote, your booking confirmation, and every invoice you issue. Consistency stops customers from claiming they did not see the deadline.

When you send an invoice after completing a boiler service, state the exact due date rather than a vague instruction like payment due upon receipt. If the invoice is dated today with a fourteen-day term, write the exact calendar date when the money needs to arrive. This removes any ambiguity.

Using professional software can help keep your terms front and center. Maintenato allows you to add standard payment terms to all your quotes and invoices automatically, so you do not have to type them out every time you bill a customer.

• Write the exact calendar date for payment, such as Payable by Friday 24th, rather than just stating 14 days.
• Include your bank sort code and account number clearly at the bottom of every invoice.
• Ensure your terms match across your quotes, job sheets, and final invoices.

What to do when customers miss your payment terms

Even with the clearest terms in the world, some customers will miss the deadline. When payment is a day or two late, a polite text or email reminder is usually all it takes. Often the customer simply forgot or meant to do it while walking out the door.

If a week passes past your deadline with no payment and no communication, follow up with a firmer message. Remind them of the original terms and ask when you can expect the funds to clear. Keep all communication professional and polite, even if you are frustrated, as a paper trail is essential if you ever need to take further action.

For persistent non-payers, you may need to look into formal getting-paid routes such as charging late payment interest if your business terms allow it, or utilizing small claims procedures through the courts. Prevention is always better, so stick to your guns on deposits and short payment terms for new domestic customers.

• Send a friendly automated or manual reminder the day after the invoice becomes overdue.
• Follow up with a phone call if the invoice is a week overdue with no response.
• Keep a clear record of all chase-up messages and customer responses.

Quick questions

Review your current payment terms today and make sure they are written clearly on your quotes and invoices before you send them out. Try using Maintenato to standardise your quotes and invoices with clear due dates, helping you keep track of who has paid and protect your cash flow.