Net 15 vs Net 30: Which payment terms actually get you paid faster?

Most freelancers default to Net 30 because that's what software defaults to. But Net 30 is a corporate convention designed around corporate cash flow — and applying it to a one-person business is often how a one-person business runs out of cash. Here's how each term actually behaves in practice.

Updated 2026-05-13 · FreeInvoice.app editorial

What payment terms actually mean

'Net 30' is shorthand for 'payment is due 30 calendar days after the invoice date.' Same logic for Net 7, Net 15, Net 45, Net 60, Net 90. 'Due on receipt' means immediately upon delivery of the invoice. 'EOM' (end of month) means due at the close of the calendar month in which the invoice was issued.

These conventions came out of corporate AP departments where invoices physically moved through approval chains — receive, check against PO, route to approver, route to AP, cut cheque, mail cheque. Thirty days was the time that whole flow took on paper. Net 30 existed to give the AP department a window to work through that paperwork. It was procedural plumbing, not a gift of credit to the customer.

Now that AP is software-based, the original justification is mostly gone. Net 30 persists because it's the default in QuickBooks, FreshBooks, and most invoicing tools. But the practical effect of Net 30 in 2026 is that it gives the customer 30 days to forget about the invoice, then another 7-14 days to remember, then another 7 days for their actual payment system to issue.

How each term actually behaves in practice

Due on Receipt. Customers pay within 0-7 days. Best used for: established customer relationships, repeat customers, small-dollar invoices (under $500), service work where leverage exists (you still hold the deliverable, you can withhold the next session). Worst for: new customer relationships where 'due on receipt' reads as aggressive, large-dollar invoices where the customer's AP system has friction.

Net 7. Customers pay within 7-14 days. Best used for: small-dollar B2B work, recurring relationships where you want predictable cash flow, gig-style platform payments. The 7-day window is short enough that customers don't 'park' the invoice the way they do with Net 30.

Net 15. Customers pay within 15-25 days. The sweet spot for most freelance and small-business work. Long enough that a corporate AP department processes it without exception, short enough that it doesn't get sidelined.

Net 30. Customers pay within 30-45 days, sometimes 50-60 in the worst cases. The default term that gets the most chase events. Net 30 is the term that turns 'a $4,000 invoice' into 'six weeks of unpaid work plus a follow-up email a week.'

Net 45 / Net 60 / Net 90. The corporate-procurement specials. These exist because Fortune-500 buyers leverage their size against vendor cash flow. Net 60 reads as Net 75-90 in practice. If a corporate client insists on these terms, either charge a 'large-customer premium' (10-25% above your standard rates) or negotiate a deposit on signing to compensate.

When to charge a deposit

The single fastest way to improve cash flow is the deposit. A 30-50% deposit on contract signing converts 'work first, get paid later' into 'work after payment.' Most clients accept deposits without negotiation when:

The total project value is above $1,500.
The project requires you to commit to material or staff costs upfront.
The project timeline extends beyond 30 days.
The customer is new (no prior payment history).

Customers who refuse deposits are usually telling you something important: either they have cash-flow problems (the deposit they can't pay later, you'll have trouble collecting), or they're inexperienced with professional services (and may resist late-stage payment requests too). A 'we don't pay deposits' policy from a customer is a yellow flag — proceed with shorter terms (Net 7 or Net 15) and bill milestones aggressively.

Late-payment fees: do they actually help?

Most US states cap late-payment fees at 1.5% per month (18% APR), with some states allowing higher. Adding 'Late payment: 1.5% per month or $25 minimum, applied after 30 days' to your terms block is standard practice.

A late fee earns its keep by anchoring the conversation. The $25 itself barely matters. Customers seeing a late-fee line item on their second-month invoice for the same overdue work are more likely to pay than customers seeing a regular re-bill.

Don't activate late fees on the first late invoice for a new customer. The goodwill of waiving a $25 fee on a customer who pays in week 5 instead of week 4 earns more in repeat work than the $25 ever could. For chronic late payers, late fees are the warning shot before you stop working with them.

Auto-draft is the cash-flow weapon

For recurring work — monthly retainers, ongoing maintenance, subscription-style services — auto-draft (ACH or credit card) is the single biggest cash-flow improvement available. Auto-draft on the 1st of the month means:

You don't chase the invoice.
You don't pay credit-card processing on every monthly cycle for the same client.
The customer doesn't have to remember to pay you.
Cancellation is friction (good friction — for both parties).

Auto-draft for new customers usually requires a written authorization form and the first month invoiced normally. By month 2 or 3, with the relationship established, the auto-draft setup conversation is easy. Some payment processors (Stripe, Square, Bill.com) handle auto-draft setup with built-in customer authorization flows.

How to choose your default terms

A reasonable default for most small businesses and freelancers:

New customers, B2C (homeowner, individual): Due on receipt or Net 7.
New customers, B2B (small business): Net 15.
New customers, B2B (mid-market or larger): Net 30 with 30-50% deposit.
Established recurring customers: Auto-draft on Net 15 or Net 30 depending on rapport.
Corporate procurement (Fortune-500 type): Their terms apply (often Net 45-60); negotiate deposits or large-customer premiums to compensate.

Net 30 as default is fine for established businesses with cash reserves. Net 30 as default for a freelancer who needs every cheque this week is a recipe for chronic anxiety. Match your terms to your cash position.

Frequently asked questions

Can I change payment terms after issuing an invoice?

Technically yes, but it's awkward and customers often refuse. Better practice: issue a new invoice with the new terms and reference the original ('superseding invoice #1284 issued 04/15'). Voiding the original and re-issuing keeps the audit trail clean.

What's the difference between 'Due on receipt' and 'Due immediately'?

Almost none — both mean 'pay now.' 'Due on receipt' is the slightly softer phrasing that doesn't feel pushy. 'Due immediately' is rarer and reads as demanding. Most invoicing software defaults to 'Due on receipt' for the immediate-payment use case.

Should I offer an early-payment discount?

Sometimes works for B2B. 'Net 30, with 2% discount if paid within 10 days' (often written as 2/10 Net 30) is a long-standing accounting convention. The discount costs you 2% but accelerates cash significantly. Only works if your margins absorb the 2%.

Can a customer require me to use their procurement terms (Net 60, Net 90)?

Yes — and large corporate clients routinely do. Negotiate: ask for shorter terms, a deposit, or a large-customer premium that compensates for the longer payment cycle. The trade is real money; quote your rates accordingly.

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