Effective contractor payment terms specify the due date in days, the deposit amount, the draw schedule, accepted payment methods, a late fee, and what happens if payment stops. Shorter terms and card payment links measurably shorten collection times; net 30 with no follow-up is how receivables age.
Payment terms belong in the signed estimate or contract. An invoice that introduces a late fee for the first time is unenforceable in practice and damages the relationship.
Concrete terms beat polite ones.
Every extra step costs you days. An invoice with a payment link that works on a phone gets paid faster than one that requires a bank transfer from a desktop. Send the invoice the day the milestone completes, not at the end of the month.
Automated, unemotional and consistent: reminder three days before due, on the due date, three days after, then a personal call at day ten. Most late payments are administrative, not adversarial, and a consistent sequence resolves the majority of them.
Mechanics lien rules vary by state and country, and deadlines for preliminary notices are unforgiving. Know your notice deadlines before you start a job, not after payment stops. Consult a local attorney for your jurisdiction's specifics.
WinkScope stores your default terms on every document, applies deposit and draw schedules automatically, includes a Stripe payment link on each invoice, sends automated reminders, and reports outstanding balances by client and by age.
In most jurisdictions yes, if the fee is stated in the signed contract and within the legally permitted rate. Check local limits before setting a rate.
Bill immediately at each milestone, include a one-click card payment link, and run an automated reminder sequence. Those three changes alone typically cut collection time significantly.