# What payment terms should a tradie use: 7, 14 or 30 days?

> Seven days is the safest default for tradies and 14 days suits most larger jobs. Here is how to choose, word and enforce your payment terms.

Source: https://www.invogo.com.au/resources/payment-terms-for-tradies
Category: Getting Paid | Published: 2026-10-17 | Author: Invogo Team

## Key takeaways

- Seven days is a safe default payment term for tradie invoices, and 14 days suits larger jobs and regular business clients.
- Payment terms should appear on the quote and the invoice, with a specific due date rather than just a number of days.
- A late fee should be agreed in advance and be reasonable, because a fee that first appears on an overdue invoice is hard to enforce.
- Deposits and progress payments reduce risk on jobs with large material costs or long timelines.
- Send the invoice the day the job finishes, since the payment clock starts when the customer receives it.

**Seven days is the safest default for a tradie's invoice, and 14 days works for most jobs.** Use 30 days only when a business customer insists and you have priced it in. The terms you write on the quote and the invoice are the terms you can enforce, so set them before the work starts, not when the money is late.

## What payment terms should a tradie use?

For small jobs and residential customers, use due on completion or 7 days. For bigger jobs and commercial clients, use 14 days, or split the job into deposit and progress payments. Here is how the common options compare.

| Terms | Best for | Trade-off |
|---|---|---|
| Due on completion | Callouts, repairs, small residential jobs | Fastest cash. Needs a way to take payment on site |
| 7 days | Most jobs under a few thousand dollars | Short enough to stay top of mind, long enough for a bank transfer |
| 14 days | Larger jobs, regular business clients | Common middle ground. Easy to explain |
| 30 days | Builders, head contractors, strata managers | Slow cash flow. Often what the customer's accounts team already pays on |
| Deposit + progress | Jobs over a week or with big material costs | You are never out of pocket for long |

If a customer asks for 30 days, you can say yes and still protect yourself. Take a deposit, ask for materials up front, or invoice in stages so the 30 days only applies to a small final amount.

## Should I put payment terms on my quote or only the invoice?

Put them on both. A quote that says "50% deposit, balance due 7 days after completion" means the customer agreed to the terms before you started. If the terms only appear on the invoice, the customer can say they never saw them.

Your invoice should repeat the terms and show a clear due date, not just "7 days". A date such as "Due: 24 October 2026" leaves nothing to argue about. See [what a tax invoice must show](/resources/tax-invoice-requirements-australia) for the other details every invoice needs, including your ABN.

## When should I send the invoice?

Send it the same day you finish the job, ideally before you leave the driveway. The payment clock starts when the customer receives the invoice, so every day you wait is a day added to your wait for payment.

A simple routine that works:

1. Finish the job and take photos.
2. Create the invoice on your phone while the customer is still there.
3. Send it by email or text link, with bank details or a payment link.
4. Set a reminder for the day after the due date.

## Can I charge a late fee in Australia?

Yes, you can include a late fee in your terms, but it has to be agreed in advance and be reasonable. A fee that only appears on an overdue invoice is hard to enforce, because the customer never agreed to it.

Under the Australian Consumer Law's unfair contract terms rules, a term in a standard form contract can be challenged if it creates a significant imbalance, isn't reasonably necessary to protect your legitimate interests and would cause harm if relied on. Since November 2023 these protections cover small businesses with fewer than 100 employees or under $10 million annual turnover (see the [ACCC's guidance on contracts](https://www.accc.gov.au/business/selling-products-and-services/contracts)). That mainly matters if you send your own customers a standard terms sheet. Keep any fee modest, state it plainly (for example "a late fee of $25 applies after 14 days overdue", or a set interest rate), and put it on the quote and invoice.

Many tradies skip the fee and use it as leverage instead. A friendly reminder usually works first, and the written fee is there if it doesn't.

## What if a customer pays late anyway?

Follow up the day after the due date, then again at 7 and 14 days overdue, keeping the tone polite and the message short. Most late payments are forgotten, not refused.

A first message can be as simple as: "Hi Sam, just checking invoice 1042 for $1,650 was received. It was due on 24 October. Let me know if you need the bank details again." Keep every reminder in writing so you have a record. If the amount is still unpaid after several reminders, get advice from your state's small business commissioner or a lawyer about a formal letter of demand.

## How do deposits and progress payments change the terms?

A deposit lowers your risk because the customer has paid something before you start. For jobs with big material costs, ask for enough up front to cover the materials. For longer jobs, invoice at set stages, such as 30% on booking, 40% at rough-in and 30% on completion.

Write the stages on the quote. A deposit invoice is still a tax invoice if you are registered for GST, so it needs the same details as a final invoice. If you are not sure whether you need to be registered, read [when to register for GST](/resources/when-to-register-for-gst). There is more on staged billing in the [builder invoicing guide](/resources/invoicing-guide-builders).

## How can Invogo help me get paid on time?

Invogo puts your payment terms and due date on every invoice and tracks which ones are paid. It adds GST and your verified ABN automatically, and Pro sends payment reminders so you don't have to chase by hand. The free plan covers 5 invoices or quotes a month, and Pro is A$9.99 a month. You can [try it free](/signup) or see how it works [for tradies](/for-tradies).

This is general information, not advice. Check with your accountant, the ATO or a lawyer about your own situation.

## Frequently asked questions

### Is 30-day payment terms normal in Australia?

It is common with larger businesses, builders and strata managers, but nothing makes it compulsory for a tradie. You choose your terms and the customer agrees to them on the quote.

### Can I ask for a deposit before starting work?

Yes. Put the deposit amount and due date on the quote so the customer agrees to it up front. For jobs with high material costs, ask for enough to cover the materials.

### What should I write on an invoice for payment terms?

State the due date, the amount, how to pay, and any late fee, for example 'Due 24 October 2026. Pay by bank transfer. A late fee of $25 applies after 14 days overdue.'

### How often should I chase an overdue invoice?

Send a reminder the day after the due date, then again at 7 and 14 days overdue. Keep each message short, polite and in writing.

## Sources

- [ACCC: Contracts (unfair contract terms)](https://www.accc.gov.au/business/selling-products-and-services/contracts)