Net 15 vs Net 30 vs Due on Receipt: Choosing Payment Terms

Payment terms usually get chosen out of habit - whatever the last client used, or whatever sounds standard - rather than actually deciding what works for you. That's a mistake, because the terms you set are the single biggest factor in how long you wait to get paid, more than how nicely you word the invoice.

Due on receipt

Payment is expected as soon as the invoice arrives. This is the fastest option on paper, but in practice it rarely means "today" - most clients still run it through whatever approval process they have, so "due on receipt" often just means "no formal grace period, so don't be surprised if we chase you." It works best for small amounts, one-off projects, or clients you don't have a long relationship with yet.

Net 15

Payment due 15 days after the invoice date. A reasonable middle ground - short enough to keep your cash flow predictable, long enough that it doesn't feel aggressive to a client with a normal approval cycle. Good default for ongoing freelance relationships once trust is established.

Net 30

Payment due 30 days after the invoice date - the most common term for agencies and larger companies, largely because it matches their own internal payment run cadence. If you're working with a company that has a formal accounts payable department, they may simply refuse anything shorter, regardless of what you'd prefer.

The tradeoff nobody states directly

Shorter terms get you paid faster on paper, but only if the client can actually meet them. Setting Net 15 with a client whose internal process runs on a monthly cycle just means you spend more time chasing an invoice that was never going to be paid inside 15 days no matter what you wrote on it. Match your terms to how the client actually operates, not to what feels aspirational.

A practical way to decide

• New client, small project: due on receipt or Net 15 - keeps exposure low while trust builds.
• Ongoing client, good payment history: Net 15 or Net 30, whichever has worked smoothly so far.
• Larger company with a formal AP process: ask what their standard cycle is before proposing anything - they'll usually tell you, and matching it avoids friction.

The part that matters more than the term itself

Whatever you choose, put it on the invoice as an actual calendar date, not just "Net 30" as text - a client shouldn't have to do the math. InvoiceCraft converts your terms into a real due date on every invoice automatically, so there's never ambiguity about when payment is actually expected.