You know the drill. It’s Friday, 6:10 p.m. Supplier calls: “We need a payment to release next week’s plasterboard.” Your last invoice is still sitting with the client. You’ve done three site visits this week just to nudge approvals. Cash is tight, and it’s not because you don’t have work—it’s because money isn’t landing when it should.

If you take one thing from this guide, make it this: the way you set payment terms on day one is the way your cash flows for the next three months. In 2025, with clients more price‑sensitive and suppliers stricter on credit, the contractors who get paid on time are the ones who write clear, lawful, and enforceable terms—and then actually run their jobs against those terms.

This isn’t theory. It’s the playbook I’ve seen work with small and mid‑sized renovation teams across France, Italy, and Spain.

What’s changed in 2025 (and what hasn’t)

• Clients shop harder and negotiate everything. They still expect a deposit—but they expect to see exactly what it covers.
• Suppliers push back sooner. You’ll feel it in August shutdowns and pre‑holiday lead times. Your working capital needs spike just when clients slow down decisions.
• Late‑payment rules are stable, but enforcement is tighter. EU rules on late payment have been around for years; what’s different is that recovery fees and interest are now routine in B2B.

Key legal anchors you should actually know (not just “my accountant handles it”):

• France (B2B): Max payment terms 60 days from invoice date or 45 days end‑of‑month. Fixed recovery fee €40 on late B2B invoices, plus agreed interest. See Code de commerce L441‑10 and Indemnité forfaitaire 40 €.
• Italy (B2B): Default 30 days; can extend to 60 if agreed and not abusive. Late interest per D.Lgs. 231/2002, plus minimum €40 recovery costs.
• Spain (B2B): Default 30 days; can extend to 60 if agreed. Interest equals ECB rate + statutory spread; minimum €40 recovery costs. See Ley 3/2004.
• Consumer off‑premises sales (all three countries): 14‑day cooling‑off rules apply. You can’t demand or keep payment during that period unless the client explicitly asks you to start before it ends and accepts the consequences. See the EU Consumer Rights Directive 2011/83/EU. Country articles: FR L221‑10, IT Codice del Consumo, ES RDL 1/2007.

That’s the guardrail. Within it, your terms are your choice. Here’s a structure that works.

The three‑part payment policy that actually lands cash

1. A deposit that covers early costs

• Small residential jobs (< €10k): 30–40% on acceptance
• Medium jobs (€10k–€50k): 30% on acceptance, 20% pre‑start (when materials are ordered)
• Larger or complex projects (> €50k): 20% on acceptance, 20–30% pre‑start against approved schedule and materials list

2. Objective stage triggers (not vague percentages)

• “First fix completed: studs, rough electrical, rough plumbing signed off”
• “Windows delivered to site (delivery note attached)”
• “Tiles installed in bathrooms 1 and 2 (photos attached)”

3. A clean finish protocol

• Final balance due at “practical completion” against a dated snag list
• Hold back 5% only if agreed upfront, released on snag closure or after a defined period (e.g., 10 days) if the client is non‑responsive

If your current terms say “40% deposit, 40% mid‑way, 20% at the end,” that’s better than nothing—but “mid‑way” invites arguments. Write down physical triggers you can prove.

Why this works

• Your deposit covers material orders and ramps up labor without burning your overdraft.
• Stage triggers reflect real progress and give your client confidence they’re paying for outcomes, not hopes.
• The finish protocol avoids the classic trap: 20 small snags blocking 30% of your cash for four weeks.

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At this point, you can set the whole schedule once and reuse it. If you’d like that done in 15 minutes, build your default terms and stage triggers in Donizo. You’ll create a template per job type, attach it to your quotes, and auto‑generate deposit and stage invoices with correct VAT and due dates.

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The exact wording to paste into your quotes and contracts

Copy, adapt, and use. Keep it simple—clients actually read short clauses.

General payment schedule (residential)

Payment Schedule
- Deposit: 30% upon acceptance of the quote (covers early materials and planning)
- Pre‑start: 20% five business days before site start, against materials order confirmation
- Stage 1: 25% at completion of first fix (framing, rough electrical, rough plumbing), confirmed by site photos and checklist
- Stage 2: 15% at completion of finishes (tiling, painting, joinery), confirmed by site photos
- Final: 10% at practical completion, due upon handover; a snag list will be agreed onsite and addressed within 7 calendar days

Late Payment (B2B)
- Statutory late‑payment interest will apply from the day after the due date as per applicable national law
- A fixed €40 recovery cost will be added on late B2B invoices where allowed

Cooling‑off (Consumer off‑premises only)
- If the client requests work to start before the 14‑day withdrawal period ends, the client owes a proportionate amount for the work performed if they later withdraw

Objective stage triggers (examples you can edit)

Stage Evidence
- Materials ordered: supplier order confirmation and delivery ETA
- Windows delivered: delivery note signed + photo of pallets on site
- First fix complete: site checklist signed + 6 photos (electrical, plumbing, framing)
- Wet areas waterproofed: photos + product batch sticker
- Kitchen installed: site photos + client walk‑through notes

B2B wording (France, Italy, Spain)

B2B Terms
- Payment due dates are firm. Maximum payment terms comply with national law (FR: 60 days from invoice date; IT/ES: 60 days if expressly agreed) 
- Late‑payment interest applies automatically from the day after the due date at the legal rate or the contract rate, whichever is higher
- A €40 fixed recovery cost will be added for late B2B invoices as permitted by law

Country‑specific notes you’ll care about

France

• Max B2B terms: 60 days from invoice date, or 45 days end‑of‑month if agreed. Reference: L441‑10
• Late fees: your quote should state an interest rate. If you don’t, the legal rate applies, and you still add the fixed €40 recovery fee. Reference: Indemnité 40 €
• Consumer off‑premises: during the 14‑day cooling‑off, you can’t demand payment unless the client requests early performance. If they withdraw after you start (at their request), bill the proportionate amount. Reference: L221‑10
• Retentions: private residential jobs often try to hold 5%. If you accept, set a deadline for snag list agreement and payment release (e.g., 10 days), or allow a bank guarantee in place of retention. Write it clearly.

Practical tip: Don’t invoice “end of month.” Invoice on the day you hit a trigger, attach proof, and set a due date. In Donizo, attach delivery notes and photos to the invoice. That reduces “we never saw this” emails.

Italy

• B2B timing: 30 days by default; 60 days if agreed in contract and not abusive. Reference: D.Lgs. 231/2002
• Late fees: automatic statutory interest from the day after the due date, plus minimum €40 recovery compensation.
• Consumer off‑premises: 14‑day cooling‑off under the Codice del Consumo. If the client signs a request to start early, you can bill proportionate work if they later withdraw.

Practical tip: August is dead. Front‑load deliveries and the “first fix” stage before ferragosto. Aim to land your Stage 1 invoice before suppliers close. Set your calendar reminders now.

Spain

• B2B timing: 30 days default; 60 days if expressly agreed. Reference: Ley 3/2004
• Late fees: statutory interest (ECB rate + spread) from the day after due date, plus at least €40 in recovery costs.
• Consumer off‑premises: 14‑day cooling‑off under RDL 1/2007. Get a signed early‑start request if you need to begin immediately.

Practical tip: Many Spanish clients like short messages with bullet points. Send a one‑paragraph stage summary with 3 photos and the invoice link. Faster approvals, fewer calls.

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If you want this to run without chasing, set it once in Donizo: deposit invoice auto‑issued on acceptance, stage invoices generated from your progress checklist, and reminders that go out before, on, and after due dates.

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How the numbers actually play out (quick math)

Let’s say a €24,000 bathroom/bedrooms refurb:

• Deposit 30% (€7,200) on acceptance
• Pre‑start 20% (€4,800) five days before start
• Stage 1 25% (€6,000) at first fix
• Stage 2 15% (€3,600) at finishes
• Final 10% (€2,400) at handover

If the Stage 1 invoice is seven days late and you’re B2B in Spain, your late interest is roughly:

(ECB rate + statutory spread) / 365 x 7 days x €6,000

Add €40 recovery cost. Small amounts—but they show you’re serious and give your admin team a script.

The collection workflow your office can run in an hour a week

1. Before you start

• Put the payment schedule and stage triggers directly in the quote
• Add late fees and the 40€ recovery note for B2B
• If it’s off‑premises consumer work, include an early‑start request form

2. On acceptance

• Create and send the deposit invoice immediately
• Share a one‑page schedule: start date, stage triggers, target invoice dates

3. During the job

• Log stage evidence: delivery notes, photos, and checklists
• Generate the stage invoice the day the trigger is met
• Send a short status message with the invoice link

4. If a payment slips

• Day 1 after due: friendly reminder with the invoice link
• Day 7: firmer note referencing late fees (B2B) and your signed terms
• Day 14: call, offer 2‑part plan (e.g., 60/40 split) with a firm date for the balance
• Day 21+: stop work notice (if the contract allows), switch to debt recovery if B2B

With Donizo, most of that is point‑and‑click: you mark the stage complete, attach proof, the invoice is ready with the right VAT, and the reminders take care of themselves.

Seasonal tactics that smooth cash

• Winter energy jobs: demand spikes, then approvals drag. Tie your schedule to delivery confirmations (heat pumps, windows). Invoice at delivery, not installation.
• August shutdowns (IT/FR/ES): front‑load deposits and Stage 1 to land cash before holidays. Don’t start a job in late July without a pre‑start payment and materials confirmed—your crew will be idle and your cash stuck.
• Year‑end squeeze: clients want completion before holidays. Separate “practical completion” from “snag finish.” Get 90% in by handover and clear snags in January.

Handling disputes without burning bridges

• Keep evidence light but consistent: 5–8 photos per stage, checklist, one‑line summary
• Acknowledge issues fast, propose fixes with dates, and link payment to agreed progress
• Use partial invoices for partial progress rather than letting one big stage block everything

Example message you can adapt:

Hi Marta, Stage 1 is complete: rough electrical and plumbing finished, framing signed off. Photos attached. 
Invoice #1321 is due on [date]. If anything looks off, reply here today so we can sort it.

Quick compliance pointers so you sleep at night

• Don’t exceed legal max terms in B2B (60 days for FR/IT/ES if agreed; FR also 45 days end‑of‑month option)
• State late‑payment interest and the €40 recovery fee on your quotes for B2B
• For off‑premises consumer jobs, include the 14‑day cooling‑off info and an early‑start request if you need to begin right away
• If you agree to a 5% retention, put a release deadline and proof rules in writing

Copy‑paste checklist: Payment terms set‑up

• Payment schedule with deposit + 2 stages + final
• Stage triggers written as things you can photograph or document
• Late fee and €40 recovery clause (B2B)
• Cooling‑off and early‑start clause (consumer off‑premises)
• Evidence list per stage (2–3 items)
• Reminder cadence (D+1, D+7, D+14)
• Stop‑work clause if severely overdue (check local law/contract type)

FAQ (for the questions you’ll get next week)

• Can I ask for 50% upfront? Yes on small jobs, but make it clear what it covers (materials, booking the slot). For off‑premises consumer jobs, you may need an early‑start request first.
• Client wants “pay on completion only.” Decline or restructure: big pre‑start materials delivery with invoice, then a single completion payment.
• Do I have to accept retention? No. Offer a short snag window with a clear release date or a bank guarantee if they insist.
• How do I handle mixed VAT rates on energy works? Set them by line. If you’re unsure, use job templates in Donizo that apply the correct rates by item.

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Ready to stop running your business on apologies and reminders? Build your default payment schedule, stage triggers, and reminders once in Donizo. On site, you tick the box, add the photos, and the right invoice goes out. That’s the difference between hoping to get paid and running a system that pays you on time.

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