Net 30, Net 15, due on receipt: how to choose invoice payment terms

Payment terms aren't just a formality on the invoice, they set the expectation for when money actually lands in your account. Loose terms are one of the most common reasons freelancers get paid late.

What the common terms mean

• Due on receipt: payment is expected as soon as the invoice arrives. Best for one-off small jobs or new clients without an established payment history.
• Net 15: payment due 15 days after the invoice date. A reasonable middle ground for ongoing client relationships.
• Net 30: payment due 30 days after the invoice date. Common with larger companies whose accounts payable runs on a monthly cycle, but it's the term most likely to slip if you don't follow up.
• Net 60/90: usually only seen with large enterprise clients or agencies, and worth pricing in the cash flow delay if you agree to it.

Shorter terms aren't rude, they're normal

New freelancers sometimes default to Net 30 because it sounds professional. It's not more professional, it's just slower. Due on receipt or Net 15 is completely standard, especially for smaller invoices, and gets cash in your account faster with no downside to the relationship.

It's worth noticing that many large companies default to Net 30 or Net 60 in their own contracts simply because it's their standard template, not because they specifically require it from you. If a client hasn't asked for particular terms, you're the one setting them, so there's no reason to default to something slower than you actually need.

Matching terms to the size of the job

It's reasonable to use different terms for different situations. A small one-off task for a new client might be due on receipt or even paid upfront. A larger ongoing retainer with an established client can comfortably sit on Net 15 or Net 30 since the relationship carries more trust and predictability. What matters is that the term is explicit on every invoice, not that you use the exact same term for every client.

Deposits and milestone payments

For larger projects, payment terms can go beyond a single due date. Splitting a project into a deposit before work starts, a milestone payment partway through, and a final payment on delivery reduces your risk significantly compared to invoicing the full amount only at the end. This is worth agreeing before the project starts, ideally in the proposal or contract, so it's not a surprise when the first invoice arrives.

Changing terms with an existing client

If you've been on Net 30 and want to move to Net 15, say so plainly on the next invoice or in a short note beforehand, don't just change it silently and hope they notice. Most clients won't push back on a reasonable term change if you're upfront about it.

A simple, direct message works well here: "Starting with the next invoice, I'm moving to Net 15 terms to keep my cash flow more predictable. Just wanted to flag it ahead of time." This kind of clear, low-drama communication rarely causes friction, whereas a silent change that a client only notices when chasing an overdue invoice can feel like a bait and switch.