Net 30, Net 15, or Due on Receipt: Which Payment Terms Should You Use?

Payment terms tell your client when the money is actually due. Vague terms (“whenever you can”) train people to put you last. Clear terms — due on receipt, Net 15, or Net 30 — set expectations and give your reminders something concrete to reference.

Due on receipt

Payment is expected as soon as the client receives the invoice. This is common for small one-off jobs, rush work, or clients who have been late before. Cash flow is faster, but some larger organizations cannot pay this way because their AP process needs a fixed number of days.

Best for: short projects, new clients, and anyone who already pays quickly.

Net 15

Payment is due 15 days after the invoice date (or after the stated “invoice date” you put on the document — be consistent). Net 15 is a useful middle ground: clients get a short window, you are not floating the work for a month.

Best for: ongoing freelancing relationships and mid-size invoices where a little flexibility helps the deal close.

Net 30

Payment is due 30 days after the invoice date. Many companies default to Net 30 because it matches their internal AP cycles. For freelancers, Net 30 can mean financing a client’s cash flow with your own. That is fine when the relationship is solid and the margin supports it — risky when you are starting out or the client is new.

Best for: established clients with proven payment history, or when a contract explicitly requires it.

How to choose

• New client? Prefer due on receipt or Net 15, plus a deposit on larger scopes.
• Recurring retainer? Bill early in the period with Net 15 so money lands before the next block of work.
• Enterprise AP? They may insist on Net 30. Price that float into your rate or ask for a deposit.
• Always late? Shorten terms on the next engagement — you are allowed to change terms going forward.

Write terms where people will see them

Put payment terms on the proposal, the contract, and the invoice. Use the same wording everywhere. Include how to pay (Interac, Stripe link, bank transfer, and so on) so “Net 15” is not followed by a scavenger hunt for your banking details.

Terms without follow-up are decorations

A due date only works if someone notices when it passes. Manual chasing fails when you are busy. Automatic reminders on the due date, 3 days later, and 7 days later keep Net 15 and Net 30 from becoming “whenever.” Pair that with clear reminder copy when you need a personal note.

Ready to put terms and reminders on autopilot? Create a free Duebird account and send your next invoice with a real due date.