Payment terms are a business decision

Most tradies inherit their payment terms from whoever they did their apprenticeship with. 30 days because that's what the industry does. But payment terms are a commercial decision, not a tradition — and getting them right makes a real difference.

What to include in your payment terms

At minimum, your terms should cover:

When payment is due (specific number of days from invoice date, or a fixed date)
Accepted payment methods
Deposit requirements for new clients or large jobs
Late payment fees (if you intend to charge them)
What happens if payment isn't received (suspension of work, debt recovery)

Standard terms for NZ trade work

For most residential and light commercial work:

Deposits: 30–50% for jobs over $500
Payment terms: 7–14 days from invoice
Progress payments: for jobs over 2 weeks, invoice weekly or at milestones
Final payment: on practical completion — not after you've left site

Should you charge late fees?

You can, but in practice many tradies don't enforce them. If you include late fees, make sure they're in your terms from the start — you can't add them retroactively.

A more effective approach is tighter terms and faster escalation, rather than fees that clients ignore anyway.

Filtering clients with your terms

Clients who push back hard on a 14-day payment term are often the ones who'll be slow to pay. Your terms tell you something about the client before you start the job.

If a client asks for 60-day terms, that's their cashflow problem — not yours. You can decline, negotiate, or price in the cost of extended terms.

Put them on everything

Payment terms only protect you if the client has seen them. Include them on:

Quotes and proposals
Invoices
Your contract or service agreement

A brief line at the bottom of a quote — "Payment due within 14 days of invoice" — is enough for most jobs.