Payment terms
Net 30 vs Net 15: Payment Terms Explained
"Net 30" shows up on invoices constantly, but plenty of freelancers use it without fully knowing what it commits them — or their client — to. Here's what it actually means, and how to pick terms that work for you.
Quick answer: "Net" followed by a number means payment is due that many days after the invoice date. Net 15 means due in 15 days; Net 30 means due in 30. Shorter terms get you paid faster; longer terms are often expected by larger clients.
What "Net" actually means
The word "Net" in payment terms simply means "the full amount, no deductions." So Net 30 reads as "the full invoice amount is due 30 days after the invoice date." It has nothing to do with tax or "net" in the accounting-profit sense — it's purely about timing and the full amount owed.
Common payment terms compared
| Term | Meaning | Typical use case |
|---|---|---|
| Due on receipt | Payment expected immediately when the invoice is received | Small jobs, new clients, or when cash flow is tight |
| Net 7 | Due within 7 days | Fast-turnaround freelance work, trusted repeat clients |
| Net 15 | Due within 15 days | Common freelancer default — balances speed and client comfort |
| Net 30 | Due within 30 days | Standard for corporate clients and larger businesses |
| Net 60 | Due within 60 days | Common with larger enterprises or government contracts, less ideal for freelancers |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount due in 30 | Encourages early payment without changing the standard deadline |
How payment terms affect your cash flow
The gap between finishing work and actually receiving payment is where a lot of freelancers run into trouble — not because clients don't eventually pay, but because 30 or 60 days of waiting can strain day-to-day finances, especially for anyone relying on that income regularly.
Shorter terms like Net 15 or Net 7 reduce that gap directly. If a client pushes back on shorter terms, a middle-ground option is requesting partial payment upfront (e.g. 50% before starting, remainder on Net 15 or Net 30 after delivery) rather than waiting for the full amount on a longer timeline.
Choosing the right terms for your situation
- New clients: shorter terms (Net 15 or due on receipt) or partial upfront payment reduce your risk until trust is established.
- Long-term, reliable clients: Net 30 is reasonable if it doesn't strain your own cash flow, and it's often what larger clients expect by default.
- Corporate or enterprise clients: many have fixed accounts-payable cycles and may only be able to process Net 30 or Net 60 regardless of what you request — worth confirming their standard terms before agreeing to work.
- Tight personal cash flow: favor due on receipt or Net 7-15, and consider requiring a deposit before starting larger projects.
Stating your terms clearly
Whatever you choose, write it plainly on the invoice itself — both the term (e.g. "Net 30") and the actual due date calculated from it, so there's no ambiguity. Vague terms are one of the most common causes of late payment, simply because the client genuinely isn't sure when it's due.
Set your terms once, apply them every time
MineInvo lets you set an invoice date and due date directly, so your payment terms are always clear on every invoice you send.
Create an invoice →Frequently asked questions
It means the full invoice amount is due within 30 days of the invoice date, with no discount for paying early. It's one of the most common payment terms used between businesses.
Net 15 generally suits freelancers better since it improves cash flow. Net 30 is more of an industry-standard expectation from larger clients and corporate accounts payable departments, so it depends on who you're invoicing.
Typically you'd send a polite follow-up reminder first. Some freelancers include a late fee clause (e.g. 1.5% per month overdue), which should be stated upfront on the original invoice to be enforceable.
Yes — sometimes written as "2/10 Net 30," meaning a 2% discount applies if paid within 10 days, otherwise the full amount is due in 30. It's a common way to encourage faster payment.