When a client's 60-day terms override the 14 days on your invoice, you end up carrying roughly four times as much unpaid work at any one time. Negotiate before you sign, take a deposit or bill in milestones so less of each project waits the full 60 days, and collect retainers by direct debit on a date you set. Once day 60 passes, statutory interest and fixed compensation apply to business invoices.
In this article
The short version
- At 60 days instead of 14, you carry roughly four times as much unpaid work at any one time.
- Ask before signing whether 60 days is fixed, when it starts and what an invoice needs to get into a payment run.
- Large companies publish their average time to pay twice a year, searchable on GOV.UK.
- Deposits, milestone invoices and retainers by direct debit cut how much waits the full 60 days.
- After day 60, business invoices carry statutory interest at 8% above base rate plus fixed compensation.
What 60-day terms do to a small agency's cash
Your invoice says 14 days. The client's purchase order, supplier agreement or master services agreement says 60. If you signed their paperwork, their terms are usually the ones that count, and the date on your invoice won't change when their payment run picks it up.
For a small agency the difference shows up in the bank, not the profit and loss. Freelancers, salaries and software are paid monthly, while the money for that work arrives two months after the invoice.
Here's a rough way to see the size of it. Say you bill about £20,000 a month. If clients pay in 14 days, you're owed around half a month's billing at any time, roughly £9,000. If they pay at 60 days, you're owed around two months' billing, about £40,000. The extra £31,000 or so is money your agency has to find from its own reserves, an overdraft or delayed payments to freelancers. And that's if everyone pays exactly on day 60.
What to ask for before you sign
The best time to change the terms is before the work starts, while the client still wants you on the project. Some useful questions:
- Are 60 days fixed, or the default in a procurement template? Smaller teams inside big companies can sometimes agree shorter terms for smaller suppliers.
- Do the 60 days run from your invoice date? If the contract doesn't say, the period is counted from the later of the work being done and the client receiving your invoice.
- When are the payment runs, and what does an invoice need to get into one? A purchase order number, the right legal entity and a completed supplier form are the usual requirements.
- Will they pay a deposit or monthly instalments on a long project?
Large companies have to publish how quickly they pay suppliers twice a year, including their average time to pay and the share of invoices paid late. You can check a prospective client's reports on GOV.UK before you agree anything, and it gives you a fair basis for the conversation.
If the terms really can't move, your price can. Some agencies build the cost of waiting into their rate for clients on long terms.
Ways to get paid sooner within their terms
You can't make a 60-day client pay in 14, but you can change how much of each project waits the full 60 days.
Take a deposit when the work is agreed. A third or a half up front, paid before you book freelancers, means the first chunk of the project has been paid for before any costs go out. With Adfin, you can send a deposit as a payment request with the services listed, payable by card, pay by bank or bank transfer, and a tax invoice is created automatically when the client pays.
Bill in milestones. Instead of one invoice at the end of a three-month project, invoice at each stage. Each invoice still waits 60 days, but the money starts arriving while the project is running.
Move ongoing work onto a retainer collected by direct debit. A mandate collects on the date you set, without anyone at the client deciding to pay, and the amount can change from month to month under the same mandate. The client is told the amount and date before each collection, so there are no surprises on their side. Some larger clients won't sign a mandate as a matter of policy, so it's worth asking and having a payment link as the fallback.
Finally, invoice on the day each stage finishes. With 60-day terms, any delay at your end is added to an already long wait.
When day 60 comes and goes
Between businesses, terms are mostly what you agree. The Late Payment of Commercial Debts (Interest) Act 1998 adds two limits: a public authority can't push the payment date past 30 days, and for anyone else, terms longer than 60 days only stand if they aren't grossly unfair to you.
Once an agreed date passes, statutory interest runs at 8% above the Bank of England base rate, which is 11.75% a year for debts falling overdue between 1 July and 31 December 2026, plus fixed compensation of £40, £70 or £100 per invoice. Adfin can add statutory interest to overdue business invoices automatically as part of Enhanced credit control, and its collection agents follow up from day 61 within rules you approve.
If the gap still needs funding, an overdraft or invoice finance will cost you fees or interest, so compare that cost with what a deposit or shorter terms would save. Adfin doesn't lend or advance cash against invoices.
Related guides
- How to invoice a client who insists on 60-day payment terms
- Why does my MSP need an overdraft even though I'm profitable? The working capital gap explained
- How much interest can you charge on late payments in the UK?
- What payment terms should a recruitment agency use?
- Cash flow for UK businesses: a complete guide
Common questions
Can a client override the payment terms on my invoice? If you signed their purchase order or supplier agreement, their terms usually apply. The terms printed on your invoice afterwards don't normally change what was agreed.
Are 60-day payment terms legal in the UK? Yes, between businesses that agree them. Terms longer than 60 days only stand if they aren't grossly unfair to you, and public authorities are limited to 30 days.
How can I check how quickly a large client pays? Large companies publish payment practices reports twice a year, including average days to pay and the share paid late. You can search them on GOV.UK.
Can I ask a 60-day client for a deposit? Yes. A deposit before work starts, or milestone invoices, reduces how much of the project waits the full 60 days.
Is the government capping payment terms at 60 days? The Commercial Payments Bill would set a 60-day maximum for large firms paying smaller suppliers, but it's still going through Parliament and isn't law yet.
Can I charge interest if a client pays after 60 days? Yes, if the client is a business. Statutory interest runs from the day after the due date at 8% above base rate, plus fixed compensation per invoice.
Sources
- legislation.gov.uk - Late Payment of Commercial Debts (Interest) Act 1998, section 4 (accurate as of November 2026) https://www.legislation.gov.uk/ukpga/1998/20/section/4
- GOV.UK - Late commercial payments: charging interest and debt recovery (accurate as of November 2026) https://www.gov.uk/late-commercial-payments-interest-debt-recovery/charging-interest-commercial-debt
- GOV.UK - Check when large businesses pay their suppliers (accurate as of November 2026) https://www.gov.uk/check-when-businesses-pay-invoices
- GOV.UK - Largest crackdown on late payments in over 25 years as landmark bill enters Parliament (accurate as of November 2026) https://www.gov.uk/government/news/largest-crackdown-on-late-payments-in-over-25-years-as-landmark-bill-enters-parliament
- Adfin - Credit control (accurate as of November 2026) https://www.adfin.com/credit-control
