Practical examples of sales agreement examples with payment terms

Real examples of sales agreement examples with payment terms

Let’s start where most people want to start: actual language. Below are real‑world style clauses that show how different businesses structure payment terms inside a sales agreement. Each example of a clause is simplified for clarity and should be reviewed by a licensed attorney in your jurisdiction.

Example 1: Standard B2B product sale with Net 30 terms

This is the classic setup for a wholesaler or manufacturer shipping goods to a business customer.

Payment Terms. Buyer shall pay the Purchase Price within thirty (30) calendar days after the date of Seller’s invoice ("Net 30"). Invoices shall be issued upon shipment of the Products. Any undisputed amount not paid when due shall accrue interest at one and one‑half percent (1.5%) per month or the maximum rate permitted by applicable law, whichever is lower. Buyer may not withhold or set off any amounts without Seller’s prior written consent.

Why this works:

• Net 30 is widely understood in the U.S. and internationally.
• Interest language encourages timely payment without being aggressive.
• The no setoff line helps protect your cash flow if the buyer has unrelated disputes.

This is one of the best examples of sales agreement examples with payment terms for straightforward, repeat product sales.

Example 2: Deposit plus balance on delivery

Common in manufacturing, custom furniture, and event‑related products where you incur costs before delivery.

Payment Schedule. Buyer shall pay a non‑refundable deposit equal to forty percent (40%) of the total Purchase Price within five (5) days after execution of this Agreement. Seller shall not be obligated to commence production until the deposit is received. The remaining sixty percent (60%) shall be due prior to shipment of the Products. Title shall transfer to Buyer only upon Seller’s receipt of full payment.

Key points in this example of a payment structure:

• Deposit secures your upfront costs.
• Non‑refundable language needs to be clear and legally enforceable under local law.
• Tying title transfer to full payment gives you leverage if the buyer delays.

Example 3: Milestone billing for services and implementation work

If you sell software implementation, consulting, or construction services, milestone billing spreads risk for both sides.

Fees and Milestones. The total Service Fee is $80,000, payable in four (4) installments as follows: (a) 25% upon Effective Date; (b) 25% upon delivery of the Design Specification; (c) 25% upon completion of User Acceptance Testing; and (d) 25% upon Go‑Live. Each milestone invoice is due within fifteen (15) days of the invoice date. Client shall notify Provider of any good‑faith dispute within ten (10) days, identifying the specific portion of the invoice in dispute.

Why this belongs in the list of best examples of sales agreement examples with payment terms:

• Aligns payment with measurable progress.
• Shorter payment window (15 days) improves cash flow.
• Built‑in dispute window keeps issues from dragging on indefinitely.

Example 4: SaaS subscription with auto‑renewal and card on file

Subscription models live or die on predictable recurring revenue. Here’s how many SaaS vendors write it.

Subscription Fees and Renewal. Customer shall pay the Subscription Fees set forth in the Order Form in advance on a monthly basis by credit card or ACH. By providing a payment method, Customer authorizes Company to charge the applicable Subscription Fees and taxes on a recurring basis until this Agreement is terminated. The Subscription will automatically renew for successive one‑month terms unless either party provides written notice of non‑renewal at least thirty (30) days prior to the end of the then‑current term.

This example of a SaaS payment clause shows:

• Payment in advance, not in arrears.
• Explicit authorization for recurring charges.
• A clear opt‑out window to reduce cancellation disputes.

For context, subscription and SaaS models continue to grow. Industry reports show global SaaS revenue increasing annually through 2024–2025, making clear payment and renewal language a practical necessity for tech businesses.

Example 5: International sale with currency and bank transfer terms

Cross‑border deals add layers: currency, bank fees, and timing.

Currency and Method of Payment. All amounts under this Agreement shall be invoiced and paid in U.S. Dollars (USD) by wire transfer to the bank account designated by Seller. Buyer shall be responsible for all wire transfer fees, intermediary bank charges, and currency conversion costs. Payment shall be deemed received when the full invoiced amount is credited to Seller’s account.

Why this is one of the more important examples of sales agreement examples with payment terms for exporters:

• Fixes the currency to avoid FX surprises.
• Clarifies who pays bank fees.
• Defines when payment is considered received, which matters for late‑fee calculations.

For international trade, it’s wise to align your terms with standard practices discussed by agencies like the U.S. International Trade Administration (trade.gov) and to be aware of Incoterms and related risk allocation.

Example 6: Retail/wholesale hybrid with volume discounts and early‑pay incentive

Some sellers use payment terms to encourage larger orders and faster payment.

Pricing and Payment Terms. Prices are set forth in Exhibit A and include volume‑based discounts. Invoices are due Net 45. If Buyer pays any undisputed invoice in full within ten (10) days of the invoice date, Buyer shall receive a two percent (2%) early payment discount on that invoice. Any late payment shall incur a late fee of the greater of $50 or one percent (1%) of the overdue amount per month, subject to applicable law.

This example of incentive‑based terms illustrates:

• Longer standard terms (Net 45) to accommodate larger buyers.
• Early‑payment discount to improve cash flow.
• Flat plus percentage late fee language, which must stay within legal limits.

The Federal Trade Commission and state attorneys general sometimes scrutinize abusive late‑fee practices, so this is an area where legal advice and awareness of consumer‑protection rules matter.

Example 7: Government or large‑enterprise customer with strict invoicing rules

Selling to public entities or Fortune 500 buyers often means adapting to their systems.

Invoicing Requirements. Seller shall submit electronic invoices through Buyer’s designated procurement portal. Invoices must reference the applicable purchase order number and itemized line items. Payment terms are Net 60 from Buyer’s receipt of a valid, undisputed invoice. Buyer shall not be obligated to pay any invoice that does not comply with this Section.

This example of a large‑buyer payment clause shows:

• Longer payment cycles (Net 60 or more) are common.
• Compliance with portal and PO requirements becomes a condition for payment.
• “Valid, undisputed invoice” language can delay payment if you don’t follow the process.

For U.S. federal contracts, payment timing and invoicing standards are influenced by laws like the Prompt Payment Act, with guidance published on sites such as the U.S. Treasury and GSA.

Example 8: E‑commerce or digital goods with pay‑in‑full at checkout

For direct‑to‑consumer digital products, payment terms are short and blunt.

Payment. Customer shall pay the full purchase price at the time of order using an approved payment method. Company will not provide access to the Digital Products until payment is successfully processed. All sales are final except as required by applicable consumer protection law.

This is one of the simplest examples of sales agreement examples with payment terms and works well where chargebacks and fraud are a concern.

How to choose between these examples of sales agreement examples with payment terms

Seeing examples is helpful, but you still have to decide which structure fits your business model. The best examples of sales agreement examples with payment terms share a few patterns:

• They match cash‑flow reality. A freelancer who waits 90 days to be paid will feel it more than a large manufacturer.
• They align with industry norms. Net 30 is common in B2B; pay‑up‑front is standard for many digital products.
• They allocate risk clearly. Deposits, milestone payments, and title‑transfer language all shift who bears what risk at each stage.

Think about:

• Your leverage. If you’re in high demand or capacity‑constrained, you can justify deposits or shorter terms.
• Customer expectations. Enterprise buyers may push for Net 60 or Net 90; small businesses may accept Net 15 or upfront.
• Regulatory landscape. Consumer sales are more tightly regulated than business‑to‑business deals.

For example, a SaaS startup selling month‑to‑month subscriptions might copy elements from the SaaS example above (auto‑renewal, card on file, payment in advance), while a custom manufacturer might lean heavily on the deposit and title‑transfer approach.

Key clauses to include in any example of a sales agreement with payment terms

Once you’ve chosen your structure, there are recurring clauses you’ll see across the best examples of sales agreement examples with payment terms:

Payment timing and method

Spell out:

• When invoices are issued (on order, on shipment, on milestone completion, monthly in advance).
• When they’re due (Net 15, Net 30, on receipt, at checkout).
• How they’re paid (wire transfer, ACH, credit card, check, online portal).

Ambiguity here is a direct path to disputes and late payments.

Late fees and interest

Most real examples include:

Any undisputed overdue amount shall accrue interest at [X]% per month or the maximum rate permitted by law, whichever is lower.

You must stay within legal limits. In the U.S., state usury laws and consumer‑protection rules can cap interest and fees, particularly in consumer contexts. The Consumer Financial Protection Bureau (cfpb.gov) and state AG sites are good starting points for guidance.

Disputed invoices

Sophisticated agreements carve out a process for disputes so that one small disagreement doesn’t freeze the entire payment.

Customer shall notify Vendor in writing of any good‑faith dispute regarding an invoice within ten (10) days of receipt, specifying the amount in dispute and the basis for the dispute. Customer shall timely pay all undisputed amounts.

This language, which you see in many real examples of sales agreement examples with payment terms, keeps money flowing while you sort out the contested portion.

Taxes and fees

A standard approach:

All fees are exclusive of applicable sales, use, value‑added, or similar taxes. Customer is responsible for all such taxes, excluding taxes based on Seller’s net income.

This avoids surprise tax bills later and aligns with common practices explained by agencies like the IRS (irs.gov) and state revenue departments.

Suspension or termination for non‑payment

Especially in SaaS and services, you’ll often see:

If Customer fails to pay any undisputed amount within fifteen (15) days after written notice of non‑payment, Company may suspend Services until all overdue amounts are paid.

This gives you leverage without immediately terminating the relationship.

2024–2025 trends affecting payment terms in sales agreements

Recent years have changed how buyers and sellers think about payment terms. A few patterns show up across many modern examples of sales agreement examples with payment terms:

Shorter cycles for small vendors, longer cycles for large buyers

• Small and mid‑sized businesses often push for Net 15 or Net 30 to stay liquid.
• Large enterprises and government entities still frequently insist on Net 60 or longer.

Reports from business associations and trade groups in 2023–2024 highlight ongoing tension around late payments to small suppliers, especially in manufacturing and construction.

Digital payments and automatic billing

• ACH and card‑on‑file arrangements are now standard in SaaS, online services, and many B2B settings.
• Auto‑renewal and auto‑billing clauses have become more explicit due to regulatory scrutiny.

In the U.S., several states have updated laws around automatic renewal and subscription transparency, prompting more detailed, plain‑language billing disclosures.

Dynamic discounting and early‑pay programs

Some large buyers offer early‑payment programs where suppliers accept a small discount to get paid sooner. If you participate, your sales agreement may reference separate early‑pay terms or a portal where such discounts are offered.

Greater transparency around fees

Regulators and courts have been increasingly skeptical of hidden or confusing fees. That’s why the best examples of sales agreement examples with payment terms:

• Spell out late fees, processing fees, and chargeback fees clearly.
• Avoid vague “administrative fees” without explanation.

The Federal Trade Commission (ftc.gov) and CFPB (cfpb.gov) both publish guidance and enforcement actions that illustrate what they consider unfair or deceptive fee practices.

FAQ: examples of payment terms in sales agreements

Q1: Can you give a simple example of payment terms for a freelance consultant?
A straightforward example of freelance payment terms might read: “Client shall pay a flat fee of $5,000, with 50% due upon signing and 50% due upon delivery of the final report. Invoices are due within ten (10) days of the invoice date, and late payments accrue interest at 1% per month.” This borrows from the milestone and deposit examples discussed above.

Q2: What are common examples of payment terms in B2B product sales?
Common examples include Net 30 on shipment, deposit plus balance on delivery, or Net 45 with an early‑payment discount. Many real examples of sales agreement examples with payment terms also include late‑fee language and specify payment by ACH or wire transfer.

Q3: Is it legal to charge interest on late payments in every example of a sales agreement?
Not always. In the U.S., state usury laws and consumer‑protection statutes can limit interest rates and late fees, especially in consumer deals. Business‑to‑business contracts generally have more flexibility, but it’s smart to check state law and, if needed, consult counsel.

Q4: How detailed should an example of international payment terms be?
For cross‑border deals, your payment terms should address currency, payment method, bank fees, and timing. Many exporters also reference Incoterms for shipping risk. Government resources such as the U.S. International Trade Administration (trade.gov) provide practical guidance on international payment methods.

Q5: Where can I find more real examples of sales agreement language?
Publicly filed contracts with the U.S. Securities and Exchange Commission (sec.gov) often include real examples of sales agreement examples with payment terms used by larger companies. Law‑school and university websites sometimes publish sample contracts and teaching materials, which can be helpful starting points.

Final thought
Examples of sales agreement examples with payment terms are just that—examples. The smart move is to treat them as templates for thinking, not copy‑and‑paste solutions. Use the patterns that match your industry and cash‑flow needs, then have a qualified lawyer tune the language for your jurisdiction and risk tolerance.