How to answer payment terms questions
"Do you need a deposit?", "Can you invoice us on 60 days?", "Can we pay in instalments?" Payment questions come up just before someone says yes, and how you answer them affects both whether you win the work and whether you get paid on time. Many owners agree to whatever the customer suggests because they do not want to lose the job, and then spend months chasing money. This guide gives you clear replies for the common questions, shows how to say no to longer terms without sounding difficult, walks through a worked email exchange, and explains how to give an AI agent your terms so it answers consistently and never agrees to anything new.
The short answer
Decide your standard terms before anyone asks: deposit, when the balance is due, how people can pay, and what happens if they pay late. Then state them plainly and confidently whenever someone asks, as if they are normal, because they are. If a customer asks for something different, say what you can offer instead, and make any change in writing yourself, never through your AI agent.
Replies you can adapt
Change the details to match your business. Names, prices and times are examples.
| When | Reply |
|---|---|
| Do you need a deposit? | Yes, we ask for a 30% deposit to book your dates, with the balance due on completion. Once the deposit is paid, your start date is confirmed. |
| How do you take payment? | We send an invoice by email, and you can pay by bank transfer or by card through the secure link on the invoice. We never ask for card details by email or message. |
| When is the invoice due? | Our invoices are due within 14 days. For this project we would invoice the deposit now and the balance when the work is signed off. |
| Can we have 30 days? | Yes, for ongoing monthly work we are happy to invoice on 30-day terms once the first invoice has been paid on time. |
| Can we have 60 or 90 days? | I understand larger companies often work on longer terms. Our standard is 30 days, as we are a small business. We could split the project into monthly stages instead, so each invoice is smaller. Would that help? |
| Can we pay in instalments? | Yes, we can split the £3,600 into three monthly payments of £1,200, with the first due before we start. I will set that out on the quote so it is clear. |
| They need a purchase order | Of course. Please send the purchase order number when you have it and I will add it to the invoice. We will start once we have the PO and the deposit. |
| They want to pay on completion only | I understand. For projects of this size we do need a deposit to reserve the time. We could reduce it to 20% if that makes it easier. |
| A payment is late | Hi Gemma, a friendly reminder that invoice 1042 for £1,800 was due on 4 November. Could you let me know when it will be paid? I have attached a copy in case it went astray. |
What to avoid
- Sounding apologetic about asking for a deposit. Clear terms make you look established, not difficult.
- Agreeing to 60 or 90 days just to win the job, without thinking about your cash flow.
- Starting work before the deposit or purchase order is in place, when your terms say you will not.
- Taking card numbers by email, message or phone note. Use a secure payment link.
- Letting an AI agent agree to new terms, write off a charge or promise a delay.
What to tell your AI agent
- Give it your terms note: deposit, invoice due dates, payment methods and what you can offer instead of longer terms.
- Tell it to state your terms plainly and never to change them.
- Tell it never to ask for, accept or repeat card details or bank passwords in any message.
- Tell it to hand any request for different terms, a payment plan or a late payment to you.
- Ask it to draft polite payment reminders for you to check, only for invoices you have told it about.
When a person should take over
- Any request for longer terms, a payment plan or a reduced deposit.
- Overdue payments beyond the first friendly reminder.
- Disputes about an invoice, a charge or the work itself.
Decide your terms before anyone asks
The easiest way to answer payment questions confidently is to have your answers ready. Write your terms down once, put them on every quote and invoice, and you will rarely need to think about them again.
- Deposit: whether you take one, how much and when it is due.
- Balance: when the rest is invoiced, such as on completion, monthly or at each stage.
- Due date: how many days the customer has to pay each invoice.
- Payment methods: bank transfer, card link, direct debit or anything else you accept.
- Late payment: what you will do if an invoice is late, such as pausing work.
- Exceptions: what you are willing to offer when someone asks for something different.
If you are unsure what terms are usual in your trade, or what rules apply to late payment where you are, your accountant or trade body can tell you. Rules differ between countries and between business and consumer customers.
Offer something instead of longer terms
When a customer asks for longer terms, they usually have a reason: a monthly payment run, a budget cycle or a policy they cannot change. You can often meet the reason without taking on the risk.
| They ask for | You could offer |
|---|---|
| 60 or 90 days | Smaller monthly stages, each on your normal terms. |
| No deposit | A smaller deposit, or a short paid first stage. |
| Paying everything at the end | Payment at each milestone, so nobody carries all the risk. |
| Their own payment run | Invoicing a few days before their run, so it is paid on time. |
| A purchase order first | Starting as soon as the PO and deposit arrive. |
A worked example
Here is an email thread for a small video production company. The AI agent answers the standard questions from the terms note and hands the request for longer terms to the owner. Names and details are examples.
| Who | Message |
|---|---|
| Customer | Happy with the quote. What are your payment terms? Our finance team usually pays on 60 days. |
| Business | Thank you, that is great to hear. Our standard terms are a 30% deposit to book the shoot dates, with the balance invoiced on delivery and due within 14 days. I have passed your question about 60 days to Owen, who will reply today. |
| Owner | Hi Rachel, Owen here. As a small company we cannot carry 60 days, but I understand your process. We could invoice the deposit now on 14 days, and split the balance into two invoices, at delivery and a month later, each on 30 days. Would your finance team accept that? |
| Customer | That works. I will raise a PO today. |
| Business | Thank you, Rachel. Once we have the PO number and the deposit, the shoot dates of 2 and 3 December are confirmed. |
The agent answered the routine part immediately. The owner made the one decision that affected his cash flow, and the customer got a solution that fitted her finance team.
A terms note for your AI agent
Payment terms, updated 1 November
Projects: 30% deposit to book dates. Balance invoiced on delivery, due in 14 days.
Monthly clients: invoiced on the 1st, due in 30 days after the first invoice is paid on time.
We accept: bank transfer, or card through the secure link on the invoice.
Rules:
- State these terms plainly. Never change them.
- Never ask for, accept or repeat card numbers or bank passwords.
- Requests for longer terms, no deposit or a payment plan: say "I have passed this to Owen, who will reply today" and hand the email to Owen.
- Late invoices: draft one friendly reminder for Owen to check. Never threaten charges or legal action.If you want to check every message about money before it goes, ask your AI agent to hold replies as drafts, and nothing goes out until you approve it.
Chasing late payments politely
Most late payments are oversights, not refusals. A friendly reminder a day or two after the due date, with the invoice attached, sorts out most of them. Keep it factual and give the customer an easy way to reply.
- First reminder: a day or two after the due date, friendly and short, with a copy of the invoice.
- Second reminder: a week later, still polite, asking when payment will be made.
- After that: a phone call from you, and a decision about pausing work or taking further steps.
Your AI agent can draft the first reminder, but you should send anything firmer yourself. Tone matters a great deal when money is involved.
How Spaces fits in
Spaces connects your own mailbox to the AI agent you already use, so it can answer terms questions in the customer's thread from your terms note. Spaces does not connect to accounting or payment systems; if you want the agent to check whether an invoice is paid, it needs its own access to that tool, which you would set up separately. Never let any agent ask customers for card details in a message.
Sum up and next step
Write your terms down, put them on every quote and state them plainly when asked. When someone needs something different, offer stages, a smaller deposit or better timing rather than simply saying yes or no.
Give your AI agent the terms note and keep every change, payment plan and overdue invoice for yourself.
Pricing
FAQ
Is it normal to ask for a deposit?
Yes, for many service businesses, especially for projects that reserve your time or need materials. State it on the quote so it is no surprise. Most customers expect it and see it as a sign you take the booking seriously.
Should I agree to 60-day terms for a big client?
Only if your cash flow can handle it. Many small businesses offer smaller monthly stages instead, so each invoice is paid sooner. If you do agree, put it in writing and make sure the price reflects the wait.
How should I take card payments?
Through a secure payment link from your invoicing or payment provider. Never ask customers to send card numbers by email, message or LinkedIn, and tell your AI agent never to accept or repeat them.
What should I do when an invoice is late?
Send a friendly reminder with the invoice attached a day or two after the due date. Most late payments are simple oversights. If that does not work, phone the customer and decide whether to pause work.
Can an AI agent send payment reminders?
It can draft them from your notes, and you can approve them before they go. Keep firmer reminders and any mention of charges or further action for yourself, because tone matters.
Should I charge interest on late payments?
Some businesses do, and the rules on it vary by country and by type of customer. Check with your accountant before adding it to your terms, and make sure it is on the quote and invoice if you do.
What if a customer asks for a payment plan?
If you can offer one, set it out in writing with dates and amounts, and take the first payment before you start. If you cannot, say so kindly and offer a smaller first stage instead.