Invoicing, payment terms and collections

A deal is not finished when the content goes live; it is finished when the money is in your bank account. Creators often wait months to be paid, chase invoices that were lost in a brand's accounts payable system, or never get paid at all. Getting paid reliably is a skill and a system: clear invoices, sensible payment terms, smooth onboarding with clients' finance teams, careful tracking of what is owed and a polite but firm collections process. This lesson covers each part, along with currency, platform payouts and what to do when a client never pays.

What an invoice must contain

An invoice is a formal request for payment. It is also a key record for your bookkeeping and tax filings, and for the client's. A professional invoice includes:

• Your legal business name, address and contact details, and your logo if you have one.
• The client's legal name and address, and the name of the person or department responsible for payment.
• A unique, sequential invoice number, such as INV-2026-031.
• The invoice date and the payment due date, or the payment terms (for example, "net 30").
• The client's purchase order (PO) number or campaign reference, if they use one.
• A description of the work, matching the contract: deliverables, dates and usage rights.
• The amount, currency and any sales tax shown separately.
• Payment instructions: bank transfer details or a payment link.
• Late-payment terms, consistent with the contract.

If you are registered for GST/HST, the CRA requires certain information on invoices so that business clients can claim input tax credits. For sales of $100 or more, include your business number for GST/HST, and for sales of $500 or more, also include the client's name, the terms of payment and a description sufficient to identify the supply. Show the GST/HST charged, or the total tax-included price with a statement that it includes GST/HST. Quebec registrants also show their QST number and the QST charged.

Vendor onboarding

Large brands and agencies cannot pay you until you are set up in their accounts payable system as a vendor or supplier. Onboarding can involve supplier portals, banking forms, tax forms, insurance certificates and sometimes a review of your company. It can take weeks. Start it as soon as the contract is signed, ask what documents are needed and where invoices should be submitted, and confirm the PO number before invoicing. Many payment delays come from invoices sent to the wrong person or without a PO number, which the system then rejects silently.

Be alert to payment fraud. Criminals sometimes impersonate clients or creators by email and ask for bank details to be changed. Confirm any change in payment instructions by phone using a known number, and never change your own instructions by email alone.

Payment terms and their cost

Payment terms decide how long you wait for money. "Due on receipt," "net 15," "net 30," "net 60" and "net 90" are common, and large companies often push for longer terms. Slow payment has a real cost: while you wait, you may need to borrow, delay expenses or pass up opportunities.

Some brands and platforms offer faster payment for a fee, such as "2/10, net 30" (a 2 % discount if paid within 10 days) or instant payout options in creator marketplaces. These are expensive when converted to an annual rate.

Deposits are the simplest protection. Asking for 30 % to 50 % on signing reduces risk, funds production costs and filters out clients who are not serious. For new or small clients, a deposit is standard; for large brands that refuse deposits, insist on clear payment milestones.

When income counts: cash and accrual

In Canada, most self-employed people must calculate business income on the accrual basis. Revenue is included when it is earned, generally when the work is done and you are entitled to bill for it, not when the money arrives. An invoice issued in December for a December campaign is income for that year even if the brand pays in February. Expenses are deducted when incurred, not when paid. This means tax can fall due on money you have not yet received, so slow payers affect your tax cash flow as well as your business cash flow. GST/HST works in a similar way: as a registrant, you generally owe the tax on the earlier of the date the invoice is issued and the date payment is received.

Currencies and cross-border payments

Creators often work with brands in other countries. Payments may arrive in US dollars, Canadian dollars, euros or pounds. Currency affects both the amount you receive and your records.

• Agree the currency in the contract and on the invoice.
• Compare the cost of receiving payments: banks may charge for incoming wires and apply a conversion spread; specialist payment providers and multi-currency accounts are often cheaper.
• Exchange rates move between invoicing and payment. A 3 % move on a large invoice can matter.
• For tax purposes, amounts received in foreign currency must be converted to Canadian dollars, generally using the Bank of Canada exchange rate on the day of the transaction or an average rate for the year if applied consistently.

Platform payouts

Platform revenue arrives on the platform's schedule, not yours. Most platforms pay monthly for earnings from an earlier period, apply minimum payout thresholds and may hold payments while they review invalid traffic or policy issues. Some deduct taxes at source or require tax forms before paying. Track platform income separately from brand income: download monthly statements, record the gross amount, any fees and withholding, and the net payment, and reconcile each payout to your bank account.

Tracking what you are owed

An accounts receivable aging report lists unpaid invoices grouped by how long they are overdue. Accounting software produces one automatically; a spreadsheet works too.

A useful summary measure is days sales outstanding (DSO), the average number of days it takes to collect revenue.

A collections process

Most late payments are caused by administrative problems, not bad intentions. A consistent, polite process resolves most of them quickly.

• Before the due date: confirm the invoice was received and approved, and that the PO number is correct.
• On the due date: send a friendly reminder with the invoice attached.
• 7 days overdue: follow up with your contact and accounts payable, asking for an expected payment date.
• 14 to 30 days overdue: escalate to a senior contact; mention late-payment interest under the contract.
• 30 to 60 days overdue: send a formal demand letter stating the amount, the contract clause, interest owed and a final deadline, and pause further work or posting if the contract allows.
• Beyond 60 days: consider small claims court, a lawyer's letter or a collection agency. Agencies often charge 25 % to 50 % of what they collect, so they suit older, smaller debts.

Keep records of every message. Stay professional: the person you are chasing may be your contact for the next campaign, and the problem may lie with their finance department.

Bad debts

Sometimes a client never pays, perhaps because it went out of business.

Because Canadian business income is reported on the accrual basis, an unpaid invoice was already included in income. You can deduct an amount for a debt you have determined to be bad in the year, or claim a reasonable reserve for doubtful debts. If you charged GST/HST on the invoice and remitted it, you can generally recover that tax through a bad debt adjustment when you write the debt off. Keep evidence of your collection efforts.

Payment platforms and their costs

Many brands and agencies pay through third-party platforms, creator marketplaces or payroll-style services. Each has its own fees, payout schedules and requirements. Before agreeing to be paid through a platform, check who pays the fees, how long funds are held, which currencies are supported and whether a minimum balance applies. Compare the net amount you will actually receive with a direct bank transfer, and record the gross fee and the platform charge separately in your books so that the full fee appears as income and the charge as an expense.