Invoice payment terms say when you expect to be paid and what happens if you are not. The most common in South Africa are Net 30, Net 7, COD and a deposit with balance on completion.
What the invoice payment terms mean
| Term | Meaning | Typically used with |
|---|---|---|
| COD | Payment on delivery | New clients, small jobs, retail |
| Net 7 | Due within 7 days of invoice date | Small businesses, sole traders |
| Net 30 | Due within 30 days of invoice date | Corporate clients, government suppliers |
| 50/50 | Half up front, half on completion | Project work with a material cost |
| Progress payments | Staged against milestones | Longer construction and installation work |
Net 30 is the default corporate expectation, and a large client will usually not accept shorter. For everyone else, shorter terms are worth asking for. Net 7 gets paid faster than Net 30 far more often than people expect, because it lands in a different mental category.
The deposit is the real protection
For any job where you buy materials, a deposit is not aggressive, it is normal. It means you are not financing your client. A 50% deposit on a R30,000 job is the difference between a bad month and a manageable one if the client goes quiet.
Say it on the quotation, not for the first time on the invoice.
Writing terms that get honoured
- Put the due date on the invoice, not just the term. Payable by 26 September 2026 beats Net 30.
- State the banking details on the document itself.
- Include a reference the client should use, usually the invoice number.
- If you charge interest on late payment, say so on the quotation and the invoice. You cannot introduce it afterwards.
- Keep it to two lines. Long terms do not get read.
Common questions
Can I charge interest on an overdue invoice?
You can if it was agreed in advance, which usually means stating it in your terms on the quotation and invoice. Confirm the applicable rate before you apply it.
What is the most common term in South Africa?
Net 30 for corporate and government clients. Smaller businesses commonly work on Net 7 or on deposit terms.
Should I offer an early settlement discount?
It works with clients who pay on schedule anyway. It rarely moves a client who is already slow.
Set your payment terms once and they appear on every invoice you send.
Create your invoiceDisclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
