Payment Terms and Validity Clauses for Quotations

Clear terms prevent arguments and late payments. Put them on every quotation and invoice.

Payment terms to consider

• Advance: for example 50% with the order, balance on delivery.
• Milestones: useful for projects, tie payments to stages.
• Credit period: “Net 15” or “Net 30” means payment within that many days of the invoice.
• Late payment: state any interest or penalty you intend to charge.
• Accepted modes: bank transfer, UPI, cheque.

Validity clause

Say how long the prices hold, such as “valid for 15 days from the date of quotation”. Material and labour costs change, so a validity date protects your margin.

Other useful clauses

• Delivery or completion timeline
• Warranty and what it covers
• What is excluded from the price
• Cancellation and change policy

Our industry templates include sensible default terms you can edit.