Free Invoice Templates

Send an invoice as soon as the agreed-upon work is completed or at each milestone defined in your contract. For larger projects with progress billing, invoice at each stage (e.g., after demo, rough-in, and finish) so cash flow stays steady throughout the job.

Net 30 is the most common payment term for contractors, meaning the client has 30 days to pay after receiving the invoice. For residential work, many contractors require payment upon completion or Net 15 to keep cash flow healthy and reduce collection issues.

Include a late payment clause in your contract and on every invoice—typically 1.5% per month on overdue balances. Send a polite reminder at 7 days past due, a formal notice at 30 days, and consider stopping work on active projects until the account is current.

Progress billing is strongly recommended for any job over $2,000 or lasting more than a week. It protects your cash flow, limits your financial exposure, and ensures the client stays engaged throughout the project. Structure payments around clear milestones like 50% at start and 50% at completion.