Guide

A payment term is the time your customer has to pay your invoice. The most common payment terms in Finland are 7, 14 and 30 days net, and a good rule of thumb for a light entrepreneur is 14 days: it's reasonable for the customer while keeping your own cash flow moving. Always agree on the payment term before starting the work, record it in the quote or contract, and mark it clearly on the invoice.

#What's a good payment term for a light entrepreneur

The right payment term depends on the customer and the nature of the work. Consumer customers and small one-off jobs often suit a short payment period, such as 7 or 14 days net. Business customers are used to 14 or 30-day payment terms, and larger organizations may request even longer. Remember that the payment term is negotiable: you don't have to automatically accept a long payment period the customer proposes, especially for a large sum.

As a light entrepreneur, you only get access to the money once the customer has paid the invoice. That's why a short payment term is directly in your interest. If you need the money faster than the customer pays, Truster's HetiPalkka (5%/invoice) pays your salary immediately after you send the invoice, without waiting for the customer's payment.

#Getting the due date and invoice details right

The due date is calculated from the invoice date according to the payment term: if you send the invoice on a Monday with a 14-day payment term, the due date falls two weeks later. Always mark the due date on the invoice as a clear calendar date, not just as a payment term. A clear due date reduces misunderstandings and gives you an unambiguous point from which a late payment begins.

Many payment delays are caused by an incomplete invoice, not unwillingness to pay. Before sending it, check that the invoice has the correct recipient and billing address, a clear description of the work done, the amount and the VAT share, the due date, a reference number and an account number. Business customers may also have their own reference or order number that must be included on the invoice for it to be processed on time. When you invoice through Truster, the invoice template makes sure all the required details are included.

#Payment reminders: when and how

If payment hasn't arrived by the due date, don't wait for weeks. Good practice is to send the first payment reminder about a week after the due date. It's worth keeping the first reminder friendly: it's often just a case of forgetting, a lost invoice, or a holiday. A friendly tone preserves the customer relationship, and most invoices get paid right after the first reminder.

If the first reminder doesn't produce results, send a second, firmer reminder stating that the invoice will go to debt collection unless it's paid by a given date. Document all contacts: dates, messages and the customer's responses. If the customer mentions payment difficulties, you can agree on a payment plan. An invoice paid in instalments is better than one left completely unpaid.

#What is interest on late payment

Interest on late payment is a compensation set out in law for a payment being late past its due date. Its purpose is to encourage the customer to pay on time and to compensate you for the inconvenience of waiting. The rate of interest on late payment is based on the Interest Act and changes over time, so it's worth checking the current rate from a reliable source, such as an official government website. In practice, it's enough to note on the invoice that late payments are subject to interest under the Interest Act.

#How debt collection proceeds

Debt collection proceeds in stages. First come your own payment reminders. If those don't help, the next stage is voluntary collection, where a collection agency sends the customer payment demands and tries to secure payment without legal action. Most debts are recovered at this stage. Only as a last resort does the case move to legal collection, where the debt is taken to a district court and, if necessary, to enforcement. Legal collection is slow and involves costs, so it's only worth pursuing for clear and sufficiently large debts.

Note the difference between a disputed and an undisputed debt. If the customer contests the invoice, for example based on the quality of the work, it's a disputed debt that can't be resolved through ordinary collection. In that case, the disagreement must first be resolved through negotiation. That's why a written contract and documentation of the work are your best insurance: they make your claim undisputed.

#Maksuvahti keeps an eye on your invoices for you

Monitoring invoices and sending reminders takes time and feels uncomfortable to many. Truster's Maksuvahti handles this for you at a price of €1.99 per invoice: it tracks whether your invoices are paid on time and takes care of reminders if a payment is late. You don't have to keep an eye on due dates yourself or write awkward reminder messages, and your customer relationship stays professional when reminders come through the service.

In short: agree on the payment term in advance and favor a 14-day payment period, mark the due date clearly, send a reminder for a late payment promptly but kindly, and move to debt collection only once reminders don't help. When you let Maksuvahti watch over your invoices, you can focus on the work itself.

#Here's how to prevent payment delays before the invoice is even sent

The best way to avoid payment delays is to get everything in order before the invoice is even sent. Invoice as soon as the work is done: the longer an invoice waits to be sent, the further away the payment gets pushed, and the easier it becomes for the customer to forget what the work was about. An invoice sent while the work is still fresh in the customer's mind is easy for them to check and confirm. Many light entrepreneurs delay invoicing for weeks and then wonder why the money arrives late.

Agree on invoicing practices at the same time you agree on the work: who receives the invoice, what address it should be sent to, whether the invoice needs the customer's reference or order number, and what payment term applies. For business customers, invoice approval may pass through several people, and any missing piece of information halts the process. When you ask these questions in advance, the invoice goes straight to payment instead of getting stuck in a round of clarifications.

For long assignments, don't leave all the invoicing until the end. When you invoice the work in parts, for example monthly or by milestone, your cash flow stays steady, and you notice right away if there are issues with the customer's payment behavior. How the first instalment is paid tells you a lot: if it's paid on time, the rest is likely to be paid too.

#When a customer asks for more time to pay

Sometimes a customer reaches out and asks for more time to pay. That's generally a good sign: a customer who communicates openly usually intends to pay. Respond constructively, but make the agreement clear: agree on a new due date or instalments in writing, and ask the customer to confirm the plan in a message. A vague "yes, I'll pay next week" is not a payment plan. If the customer breaks the agreed plan, move to debt collection without delay.

Also remember your own wellbeing: waiting for payments and having to chase them is draining, which is why many people let invoices linger too long. Having a system protects you here too. When your reminder practice is always the same, a first reminder a week after the due date, a firmer second one after that, and then debt collection, you don't have to make a separate decision for every single invoice. Automatic monitoring like Maksuvahti makes this routine effortless.