Invoice Payment Terms in the US vs UK: A Guide for Recruitment Agencies

As UK-based recruitment firms expand into the US market, understanding the differences in payment structures and expectations becomes vital. One commonly overlooked – yet critical – differences lies in invoice payment terms and how these affect cash flow, contractor satisfaction, and client retention. 

We’ll walk you through the key differences between the UK and US payment practices, highlight the challenges you might encounter, and share some actionable advice to help you navigate them successfully. 

Key Differences in Invoice Payment Terms: US vs UK
Factor  UK  US 
Contractor Payroll Frequency  Bi-weekly or monthly  Weekly or bi-weekly (most states mandate weekly) 
Client Invoicing Frequency  Monthly   Varies – can be between weekly to monthly 
Client Payment Terms  Typically, between Net 7 – Net 30  Typically, between Net 7 – Net 60 
Contractor Expectations  Flexible (familiar with monthly pay)  Expect weekly pay – monthly pay can be a deal-breaker 
Why US Invoice Payment Terms Matter 

Managing Contractor Expectations 

When you place US-based contractors, underestimating payroll frequency expectations can quickly derail a placement. 

In the UK, contractors may be used to monthly or bi-weekly payments. However, in the US, it’s common – even mandated- for contractors to be paid weekly. In fact this is a common risk, where UK recruiters will lose placements simply because their pay cycles didn’t align with US contractor expectations. When setting up your operations, aligning contractor pay cycles with your client’s invoice payment terms will be critical to avoid cash flow shortfalls.

Tip: Always clarify contractor expectations early, and be prepared to offer weekly pay if you’re recruiting in the US market. (Invoicing clients on a Net 7 basis is one way to support that.) 

Setting Smart Payment Terms with US Clients 

To avoid cash flow issues, we strongly advise UK agencies working in the US to invoice US clients on a weekly Net 7 basis where possible. While this is faster than the US norm (Net 30+), it helps bridge the gap between payroll outflows and client inflows. 

This strategy also ensures you’re not left covering multiple weeks of payroll before your client pays their invoice. 

Below are the most common invoice payment terms recruiters may encounter when working with US-based clients.

  • Net 7/15/30/60/90this usually indicates that payment is due 7, 30, or 60 days after the invoice date, respectively. 
  • Due on receipt – the invoice is due immediately upon being receivedno grace period. 
  • EOM – payment is due at the end of the month in which the invoice was issued. 
  • 15 MFI (15th of the Month Following Invoice) – Payment is due on the 15th day of the month following the month in which the invoice was issued. 
  • COD (Cash on Delivery) – Payment is made at the time goods/services are delivered—less common in recruitment, more in product-based sectors. 
  • Retainer – client pays for the services up front ahead of the recruitment cycle 

Although Net 30 is widely used on both sides of the Atlantic, UK firms are more likely to encounter Net 14 or Net 60 in practice, whereas longer terms like Net 90 may surface in US contracts, particularly with large enterprises.  

How US Invoice Payment Terms Affect Cash Flow 

With the increased payroll frequency in the US and potentially longer client payment terms, cash flow gaps create a real risk. Invoice factoring companies such as Advance Partners, Raise and 3R are recruitment specialists for funding contractors and invoicing your clients. 

This is where invoice factoring and EOR (Employer of Record) solutions come in handy. These services can: 

  • Advance funds against your unpaid invoices 
  • Ensure contractors are paid weekly without straining your working capital 
  • Ensure contractors are paid in line with state requirements  
  • Help you scale faster in the US without large cash reserves 

Expanding into the US is a big opportunity, but success lies in localising your financial operations just as much as your recruitment approach. Aligning your pay practices and payment terms with US standards will not only keep contractors and clients happy – it will keep your business cash-healthy, and ensure sustainable growth.  

If you’re ready to start your journey – get in touch with our team today.