What good payment terms cover
- When: a specific number of days from the invoice date. Shorter is better — 7 or 14 days is normal for freelancers.
- How: accepted payment methods and the details to use.
- What happens if late: interest, compensation and your right to pause work.
- Disputes: a short window to raise problems, so "I wasn't happy with it" doesn't appear two months later.
- Ownership: the client owns the work when they've paid for it.
Business clients vs consumers
With business clients you can rely on the Late Payment of Commercial Debts (Interest) Act 1998. If you set your own rate instead, it must be a "substantial remedy" — otherwise a court can ignore it and apply the statutory rate.
With consumers, the Act doesn't apply. Any interest or late fee must be fair and prominent under the Consumer Rights Act 2015: modest, clearly explained, and agreed before the work starts.
This wording is a practical starting point, not legal advice. Have a solicitor review terms for high-value or unusual contracts.