What does the due date mean?

One of the most common questions in invoicing relates to the due date. When should the money show up in your account? The general rule and established practice is simple: the due date is the day by which the invoice must be paid at the latest. It doesn't automatically mean the day on which the funds are already available to you.

Bank delays and the transfer of funds

When a customer makes a payment exactly on the invoice's due date, the transfer of funds typically takes some time due to payment processing between banks. Because of this natural bank delay, it's completely normal for the money to arrive and appear in your own account only a few days after the actual due date.

Differences between invoicing consumers and businesses

The type of customer being invoiced affects which rules and recommendations should be followed for payment terms.

Consumer customers

‍For invoices sent to consumers, it's recommended to always use a payment term of at least 14 days. This follows the guidelines of the Finnish Competition and Consumer Authority as well as good invoicing practice. In consumer trade, the due date is absolute: it always means the day by which the customer must have submitted the payment.

Business customers

‍In business-to-business (B2B) trade, practices are more flexible. The due date and other terms are based on the delivery and payment terms agreed between the companies themselves. Although the general rule is the same, businesses can agree on payment terms more freely if they wish.

However, the most important rule of thumb for anyone invoicing is worth keeping in mind: the due date indicates the deadline for the customer's payment obligation, not the day the money arrives.