Long programmes absorb cash until milestones are met. Payment terms decide how much working capital finance is needed and what a borrowing base can include.
Across the 3 regimes
United Kingdom
The Procurement Act implies a 30-day payment term for valid invoices into every public contract. Milestone payment plans are set contract by contract.
United States
Progress payments on costs incurred (customarily 80%, 85% for small businesses) or performance-based payments, plus Prompt Payment Act interest on late payment.
EU and NATO
Set by national law and the contract. EU funding (EDF grants, SAFE loans) pays member states and consortia on its own schedules.
The rest of this page sets out the 2 quoted provisions behind these cells, what is usually negotiated, and what lenders and buyers ask. It is free with a work email, along with the full tools and guides.
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Related
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.