Net 15 vs Net 30 vs Due on Receipt: Which to Use
Payment terms are the part of an invoice that decides when you actually see your money. Choose them carelessly and you may end up waiting a month or more for a small job. The net 15 vs net 30 vs due on receipt decision is one every freelancer and small business faces, and there is no single right answer. This guide explains what each term means, how to pick the one that fits your situation and how to state it so clients cannot miss it.
What Payment Terms Actually Mean
Payment terms tell your client how long they have to pay after the invoice is issued. They appear on the invoice near the due date and total, and they should match what you agreed in your contract, quote or email thread.
The word "net" refers to the full invoice amount, with no discount. "Net 30" therefore means the full amount is due 30 days after the invoice date. "Net 15" means 15 days. "Due on receipt" means the client is expected to pay as soon as they receive the invoice.
The Three Main Terms Explained
Due on receipt
With due on receipt, there is no grace period. The client should pay right away. In practice, many people still take a few days, because they need to approve and process the payment, but the expectation is immediate.
When it works well
- Small, one-off jobs where a delay would be disproportionate to the invoice value.
- New clients you have not worked with before.
- Businesses with tight cash flow that cannot afford to wait.
- Consumer clients who are used to paying promptly.
When it can backfire
Larger companies often have approval workflows and payment runs that cannot be rushed. Demanding payment on receipt from such a client may simply result in a late payment that is technically your client's fault but still your cash-flow problem. It can also feel abrupt to long-standing clients.
Net 15
Net 15 gives the client two weeks. It is a popular middle ground for small projects and for freelancers who want quick payment without sounding demanding. Two weeks is enough time for most clients to approve and pay, and short enough that you are not funding their business for long.
Net 30
Net 30 is the most common term in business-to-business invoicing, particularly with larger organisations. Many accounts departments process payments monthly, so a 30-day window matches their internal rhythm.
The trade-off is cash flow. If you invoice at the end of a month on Net 30 terms, you may not be paid until the following month ends. For a freelancer with rent and tax obligations to meet, that wait can be painful.
Comparing the Common Terms
| Term | Due date | Best for | Main risk |
|---|---|---|---|
| Due on receipt | Immediately | Small jobs, new clients, consumers | Feels pushy; may be ignored by large firms |
| Net 7 | 7 days | Quick turnaround projects | Tight window for approvals |
| Net 15 | 15 days | Freelancers and small agencies | May still lag at companies with slow approvals |
| Net 30 | 30 days | Larger clients and corporate work | Slower cash flow |
| Net 60 or Net 90 | 60 or 90 days | Long-term enterprise contracts | Heavy strain on small suppliers |
Good to know: Our invoice generator offers due on receipt as well as Net 7, 15, 30, 45, 60 and 90, and calculates the due date for you based on the issue date.
How to Choose the Right Term
Start with the client, not the calendar. Ask yourself a few questions.
- How large is the invoice? The bigger the amount, the more a delay hurts, and the more reasonable it is to ask for shorter terms or a deposit.
- How well do you know the client? New clients benefit from shorter terms. Trusted, long-term clients may be fine with Net 30.
- What are their internal processes? If you know they pay on a monthly run, align your terms with it.
- How much does cash flow matter to you? If your own bills are due soon, shorter terms are a practical necessity.
For bigger projects, consider splitting the bill. Our guide to deposit and milestone invoicing shows how to reduce the amount you are waiting on at any one time.
Longer terms are a form of credit. Every extra week you give is a week you are lending your client money for free, so choose deliberately.
Early Payment Discounts and Late Fees
Some businesses sweeten their terms with an early payment discount, such as taking 2 percent off if the client pays within 10 days. This can speed up payment, but make sure the discount is affordable and clearly explained on the invoice.
On the other side, you can state a late fee for overdue invoices. The key is to agree it in advance and show it on the document. Rules on late-payment interest and fees differ between countries, so check what applies locally. Our article on setting and communicating late payment fees covers the practical side.
Tip: Write the exact due date, not just "Net 30". A calendar date such as "Due: 14 August 2026" leaves no room for interpretation.
How to State Your Terms Clearly
Put the terms in three places if you can: your contract or quote, the invoice itself and the email that carries it. Keep the language plain, for example: "Payment is due within 15 days of the invoice date." Mention accepted payment methods right beside it so the client knows how to act.
If a client asks for longer terms, you do not have to refuse. You can agree to Net 30 in exchange for a deposit, or offer a small discount for earlier payment. For reminders when a due date passes, see how to write a payment reminder email.
Frequently Asked Questions
Does Net 30 start from the invoice date or the delivery date?
Usually from the invoice date, but it depends on what you agreed. State the starting point explicitly in your contract or on the invoice to avoid disagreements.
Can I change payment terms after sending an invoice?
Changing terms after the fact can cause friction. If you must adjust them, tell the client early and issue a corrected invoice, ideally with a credit note for the original.
What is the best term for a freelancer?
Many freelancers use Net 14 or Net 15 for small clients and Net 30 for corporate ones, with deposits on bigger projects. Pick what fits your cash flow and your client.
Ready to set your terms? Create a free invoice now and choose the payment term that suits you.