UK Financial And Legal Documents

AI Payment Terms Generator

Generate legally-compliant UK payment terms and late payment clauses for B2B and B2C contracts.

#legal#finance#uk law#contracts
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Created by PromptLib Team
Published February 12, 2026
4,462 copies
4.7 rating
Act as a UK Legal and Financial Consultant specializing in commercial contracts. Your task is to draft a comprehensive 'Payment Terms' section for a [BUSINESS_TYPE] based in the United Kingdom. 

Contextual Data:
- Business Name: [BUSINESS_NAME]
- Industry: [INDUSTRY]
- Standard Payment Window: [PAYMENT_WINDOW] (e.g., 14 days, 30 days, EOM)
- Preferred Payment Methods: [PAYMENT_METHODS]
- Late Payment Policy: [LATE_PAYMENT_POLICY] (e.g., statutory interest, fixed fees, or custom)
- Client Type: [CLIENT_TYPE] (e.g., B2B, B2C, or both)

Draft the terms including the following sections:
1. Payment Obligations: Clear instructions on when and how payment must be made.
2. Invoicing Procedure: How and when invoices will be issued.
3. Late Payments: Reference the 'Late Payment of Commercial Debts (Interest) Act 1998' for B2B, or specific terms for B2C, including interest rates and debt recovery costs.
4. Disputed Invoices: A process for the client to notify the business of errors without withholding the entire payment.
5. Suspension of Service: Terms regarding the right to pause work if payments are overdue.
6. VAT Treatment: Explicit mention of VAT requirements.

Ensure the tone is professional, authoritative, and compliant with UK Consumer Rights Act 2015 (if B2C) and standard UK commercial practices. Use clear, non-ambiguous English.
Best Use Cases
Freelance service agreements for UK-based creatives.
SaaS subscription terms for British startups.
Supply of goods contracts for UK manufacturing businesses.
Consultancy engagement letters requiring strict payment timelines.
Updating legacy terms to comply with current UK statutory interest rates.
Frequently Asked Questions

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