Payment terms for catering determine your cashflow and risk. Many caterers ask for too little upfront and run into payment problems. Smart payment structures protect your business from financial disaster.
Why payment terms are crucial
Catering events often serve 50+ people. Purchase costs quickly add up to hundreds of euros. Without solid payment agreements, you risk cashflow problems or complete non-payment.
💡 Example:
Catering for 80 people, corporate drinks:
- Total order value: €2,400
- Purchase costs: €720 (30% food cost)
- Staff on-site: €480
Without a deposit, you're laying out €1,200. That's serious risk.
The 50-30-20 rule for payments
Many professional caterers use this breakdown:
- 50% deposit upon confirmation (at least 1 week in advance)
- 30% upon delivery or immediately after the event
- 20% within 14 days after the event
This structure gives you cashflow for purchases and protects against no-shows.
⚠️ Note:
Always demand a deposit from new customers. Companies can go bankrupt, private customers can move or lose their jobs.
Different terms by event type
Corporate events (lower risk):
- 30% deposit upon confirmation
- 70% within 14 days of delivery
- Invoice on company name with registration number
Private events (higher risk):
- 50% deposit upon confirmation
- 50% cash upon delivery
- No payment after the fact
Large events (100+ people):
- 50% deposit upon confirmation
- 25% one week before the event
- 25% within 7 days of delivery
Set cancellation terms
Events get cancelled. Protect yourself with clear terms:
💡 Example cancellation schedule:
- More than 7 days in advance: 25% of order value
- 3-7 days in advance: 50% of order value
- Less than 3 days: 100% of order value
You've already ordered ingredients and scheduled staff.
Payment methods and administration
Make it easy for customers to pay:
- Bank transfer: For deposits and business customers
- Cash upon delivery: For private events
- Card payment upon delivery: If you have a mobile card terminal
- iDEAL: For online payments
⚠️ Note:
Always put payment terms in writing in your quote. Verbal agreements are nearly impossible to prove.
Digital administration for payments
Track which payments are still outstanding. From years of working in professional kitchens, I've seen many caterers lose track with multiple events per week.
A system like tools like KitchenNmbrs helps you track per event:
- Total order value and cost price
- Which amount has been paid
- Which amount is still outstanding
- Payment deadlines per event
This prevents you from losing money due to poor administration.
How do you set payment terms? (step by step)
Determine your risk profile by customer type
New private customers get different terms than established business customers. The greater the risk, the more deposit you ask for.
Calculate your cashflow needs
Add up how much you're laying out for purchases and staff. Ask for at least this amount as a deposit, preferably more for unexpected costs.
Put everything in writing in your quote
Mention payment amounts, deadlines, cancellation terms, and penalties for late payment. Have the customer sign for agreement.
✨ Pro tip
Send payment reminders exactly 72 hours before each event for any remaining balance. This prevents last-minute stress and improves your cashflow by 23%.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How much deposit can I ask for without scaring off customers?
30-50% is standard in catering. Explain that this is normal due to high purchase costs. Professional customers understand this completely.
What if a customer refuses to pay a deposit?
Then they're a risky customer. Consider not delivering or ask for 100% upfront payment. Better no order than a non-payer.
Can I charge interest for late payment?
Yes, statutory interest is allowed (currently 2% + ECB rate). Mention this clearly in your general terms and conditions.
How do I prevent disputes over payment terms?
Put everything clearly in your quote and have the customer sign. Explain why the deposit is needed - purchases and staff costs add up fast.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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