Payment Terms on Freelance Invoices: What Really Counts in Switzerland

As a freelancer invoicing in Switzerland, you'll eventually hit the same question: how long should you give your client to pay? And what happens if that deadline passes anyway? The answers are less complicated than you might think — but there are a few details many freelancers get wrong.

What the law says — and what it leaves open

Swiss contract law (Obligationenrecht, OR) does not set a standard payment term by statute. If your invoice carries no deadline, the debtor is only considered in default after you send a reminder under Article 102 OR. In other words: if you don't state a payment term on the invoice, you must send a formal dunning notice before any late-payment interest can accrue.

That's disadvantageous for freelancers. A clear deadline on the invoice — such as "payable within 30 days" — triggers default automatically once that date passes. No reminder needed, and interest runs from the next day.

Choosing the right term

There's no universal "correct" term, but these rules of thumb work well in Swiss practice:

Situation	Recommended term
Established client, good payment history	30 days
New client or first contact	10–20 days
Small amount (under CHF 200)	10 days
Public sector / large corporation	30 days (often contractually set)
Final invoice after project completion	20–30 days

Terms under 10 days rarely go down well and create friction. Terms over 60 days needlessly weaken your cash flow — unless the client has specifically negotiated it and pays a surcharge.

Where the payment term appears on the invoice

The payment term must be clearly and legibly stated on the invoice. Two formats are standard:

• Relative phrasing: "Payable within 30 days of invoice date"
• Absolute date: "Due by 15 October 2026"

Both are legally equivalent. An absolute date leaves the client no room for interpretation and prevents excuses like "from when exactly?" With Swiss QR-bills, the due date is encoded directly in the QR-code and appears in the recipient's e-banking as a reminder — a practical advantage over plain payment slips. To set up such an invoice correctly, see the step-by-step guide to creating a Swiss QR-bill.

Early-payment discount — is it worth it?

Some freelancers offer a discount: "2% if paid within 10 days". It sounds generous, but it has a catch. On a daily rate of CHF 1,200 and an invoice for CHF 4,800, 2% is exactly CHF 96 — money you give away even though the client would have paid anyway.

Early-payment discounts make sense mainly if you have a documented cash-flow squeeze or if the client has a track record of paying very slowly and a discount genuinely changes their behaviour. For most freelancers, a clearly communicated dunning process is the better strategy.

What to do when the deadline passes

Many freelancers underestimate their own scope for action here. The standard procedure in Switzerland is:

1. Payment reminder (by email, friendly, at no cost) — roughly 3–5 days after the term expires
2. First dunning notice with a grace period of 10–14 days and notice of late-payment interest (5% p.a. under OR law, unless otherwise agreed)
3. Second dunning notice with explicit reference to debt collection proceedings
4. Debt collection via the collection office — possible from day one of default, so even after step 1

The full procedure from the first reminder email through to debt collection is explained in detail in the practical guide to the Swiss dunning process.

Dunning fees: yes or no?

Freelancers may charge dunning fees if these are stated in their terms and conditions (AGB) or in the contract. Without this basis, you have no statutory right to fees — only to interest and provable collection costs.

If you find yourself dunning regularly, that's a signal to rethink your terms: request a higher deposit, set shorter payment terms, or drop loyal clients with poor payment discipline.

Payment term and VAT: timing matters

For VAT-liable freelancers (annual turnover above CHF 100,000), the due date has an accounting dimension too. Those who report based on invoiced amounts (the standard case) owe VAT in the quarterly period when the service is invoiced — regardless of when the client pays.

A long payment term means you may have to front the VAT before cash arrives. Those who report based on cash received (only available on request) avoid this issue but face other accounting constraints. Details on both methods appear in the article on Swiss VAT basics 2026.

Set payment terms in the offer — not just on the invoice

The best time to discuss payment terms is before work begins. State in your offer or contract:

• Payment term in days
• Whether a deposit is due and when
• Any dunning fees or interest charges
• Preferred payment method (QR-bill, eBill, bank transfer)

What's in the contract is binding. What appears only on the invoice and was never discussed can be challenged in a dispute — especially on longer projects.

At a glance

• Without a payment term on the invoice, a reminder is needed before default occurs.
• "Due by [date]" is the most precise wording.
• 20–30 days is the practical standard range for Swiss freelancers.
• Early-payment discounts make sense only with genuine cash-flow need or proven slow payers.
• VAT-liable freelancers must remit tax even if the invoice remains unpaid (invoice-basis accounting method).
• Payment terms belong in the contract, not just on the invoice.

If you want to create invoices with correct due dates and QR-codes in minutes, the SnapBill app offers a solution built for Swiss freelancers.