The Perfect Payment Term: 14, 30 or 60 Days?

In Germany, 14 days is the standard payment term for small and medium-sized businesses. This short term ensures quick cashflow and signals clear expectations. For larger projects or established business relationships, 30 days is also common.

Legally speaking: If you don't specify a term, the invoice is due immediately. In practice, however, 7-14 days is still considered reasonable. A clear statement prevents misunderstandings and gives both sides planning security.

In France and the Netherlands, 30 days is the norm. French companies traditionally expect longer payment terms, especially in B2B. The Netherlands is similar, with large companies often enforcing 60 days.

In Belgium and Luxembourg, terms range between 14 and 30 days. Spain and Italy tend toward longer terms – 30 to 60 days are not uncommon there. You should consider these cultural differences when doing international business.

14-day payment terms have clear advantages: Quick cash receipt, better liquidity, less default risk. The invoice is still fresh in memory, the service just rendered – momentum favors quick payment.

Short terms are particularly suitable for new customers, smaller orders, and industries with high cashflow pressure like trades or hospitality.

The downside: Some customers – especially large companies – have internal payment cycles that simply don't allow 14 days. Your invoice ends up in a queue and still only gets paid after 30 days. This frustrates both sides.

A term that's too short can also make established customers suspicious: "Do they doubt my payment reliability?"

30 days is internationally considered a fair compromise. This term gives even larger companies enough time for their accounting processes without unnecessarily burdening your liquidity. You appear professional and customer-friendly.

The longer term gives customers more leeway and reduces stress on both sides. At the same time, the invoice is still current enough not to be forgotten.

The price: 30 days means waiting an average of two weeks longer for your money. When cash is tight, this can be critical. Additionally, the risk increases that customers run into financial difficulties before paying.

For established business relationships, larger orders, and international customers, however, this term is often the best choice.

Payment terms of 60 days or longer should be the exception. They occur with very large projects, public sector clients, or when the customer explicitly requests it and you agree.

The risk increases significantly: Two months is a long time during which much can happen. Your liquidity suffers, and the default risk rises. Only accept such terms with absolutely reliable partners.

There is no perfect payment term – it depends on industry, customer type, and project. Adapt your terms intelligently: New customers 14 days, regular customers 30 days, corporations by agreement.

Combine different terms with incentives: "14 days net, or 30 days with 2% early payment discount for payment within 5 days." This way both sides benefit.

Clarify payment terms already in the quote. This avoids discussions when the invoice arrives. For international business, research local customs.

And remember: The payment term on paper is one thing – actual payment behavior is often something else. Systematic documentation helps you develop realistic expectations.