Net 15 vs Net 30 vs Due on Receipt for Freelancers

Most explanations of payment terms stop at the definitions. That is useful for an accountant and not much use to a developer who has to decide, today, what to type in the "Due" field before sending an invoice. This post defines the three terms, then makes the decision for you by client type, with the exact wording and the first reminder date for each.

What do net 15, net 30 and due on receipt actually mean?

"Net" refers to the full amount owed, and the number is the count of calendar days the client has to pay it. Stripe's guide to net payment terms describes net 10 and net 15 as payment due 10 or 15 days after the invoice date, net 30 as due within 30 days of the invoice date, and due on receipt as the customer paying immediately when the goods or services are delivered. It also notes that unless a contract says otherwise, weekends and holidays count when working out the due date.

Here is how the three compare for a freelancer:

Term	Invoice due	What it signals	Cash timing for you
Due on receipt	When the client receives it	Trust is low or the client is paying personally	Fastest, but "immediately" is not a date
Net 15	15 calendar days after the invoice date	A professional, short but ordinary term	About two weeks of waiting
Net 30	30 calendar days after the invoice date	The default many companies expect	About a month of waiting

Two details matter more than the labels:

• Due on receipt is a request, not a deadline. There is no date on it, so there is nothing to be late against. Clients who read it as "whenever I get to it" are not wrong, and you cannot call the invoice overdue on day two with any force.
• Net terms are a loan. Every day beyond "now" is credit you extend to the client. Net 30 means you finance a month of their cost of having you. That is fine when the client is reliable and the amount is small compared with your monthly income. It is not fine when one invoice is a third of your quarter.

Which terms fit which kind of client?

This is the decision most guides skip. The right term follows from how the client pays, not from what is "standard." Use this as your default and adjust from there.

Who you bill	Default terms	Exact wording on the invoice	First reminder
Solo founder paying by card or bank transfer	Due on receipt, with a date	"Due on receipt. Please pay by [date, 3 days out]."	The day after that date
Small startup with a founder approving invoices	Net 7 to net 15	"Net 15. Payment due [exact date]."	The day after the due date
Agency or studio that bills its own client	Net 15	"Net 15. Payment due [exact date]."	The day after the due date, a nudge one day before if the agency is slow
Mid-size company with an AP department	Net 30, invoiced early	"Net 30. Payment due [exact date]. PO: [number]."	A check-in at day 10 that the invoice was approved, then the day after the due date
Enterprise with a vendor portal	Net 30 (they may insist on longer)	"Net 30 from receipt of invoice via [portal]."	Day 7, to confirm it was received and entered
Repeat client with a clean payment record	Net 15, or whatever you already agreed	Same as the last invoice	The day after the due date
First-time client of any kind	Deposit first, balance on a short term	"Deposit invoice due on receipt. Balance net 15."	The day after the due date

The reasoning behind the rows is straightforward.

A founder paying by card has no approval cycle. The only thing slowing payment is attention, so a specific near date works better than 30 days of drift. The U.S. Chamber of Commerce's guide to net terms describes net 15 as the tightest of the common options and says it suits smaller invoices and newer client relationships, which is exactly the profile of a founder buying a small piece of work.

An agency is paid by its own client and then pays you. Net 15 is easy to defend, because the agency has usually already invoiced its client or will within days. Net 30 is acceptable if the agency has been reliable, but you are effectively funding its float.

A company with an AP department will not pay faster because you asked nicely. Invoices go into an approval queue, a payment run and sometimes a vendor portal. Asking for net 15 usually costs goodwill and gains nothing. The better lever is sending the invoice early, the same day the work is accepted, so the 30 days start counting sooner. If the client has a monthly payment run, an invoice sent three days before the cutoff can land a full cycle earlier than one sent three days after it.

A first-time client is a different problem. No payment term fixes a client you have no history with. A deposit does. For the percentages, see how much deposit to charge for freelance dev work and the broader rules in net terms, deposits and late fees.

Does due on receipt get you paid faster?

Sometimes. It works when the person who received the invoice is also the person who can pay it. A founder with a business card or a bank app can settle an invoice in two minutes, and "due on receipt" tells them there is nothing to wait for.

It does not work, or works against you, in three situations:

1. The invoice has to be approved by someone else. The phrase changes nothing about the approval queue. The invoice sits in the same line it would have sat in anyway, except now it is technically overdue from day one, which strains the relationship before the client has had a chance to pay.
2. You cannot enforce it. Since there is no date, "overdue" is a judgement call. A late fee clause tied to "due on receipt" is hard to apply.
3. The client needs a vendor onboarding step. If you are not set up as a supplier yet, they cannot pay you no matter what the term says.

The fix is to attach a real date. "Due on receipt" plus "Please pay by 12 November" gives you the speed of the term and an actual deadline to measure against. Treat the phrase as a friendly framing and the date as the term.

If you use late fees, put the wording next to the date. The late fee wording guide has clauses you can copy.

When does the net 30 clock start?

This is where invoices quietly go wrong. Three starting points are in common use, and they are not equivalent:

• Invoice date. The clock starts on the date printed on the invoice. This is the standard reading and the one Stripe's guide uses. It is the best default for you, because you control the date.
• Date the invoice is received. The clock starts when the client gets it. This protects the client if you backdate or send late, and it is how many procurement departments read terms.
• Delivery or acceptance of the work. The clock starts when you deliver. Some contracts say this, and it can push the real due date out if acceptance drags.

Do not leave it open. Write the due date as a calendar date on the invoice, not only as "Net 30." "Net 30, due 14 December 2026" cannot be read three ways.

If the contract is silent and a dispute reaches a legal setting, the local rule governs, and it varies by country. In the UK, for example, government guidance on commercial payment terms says a payment counts as late 30 days after the customer receives the invoice or 30 days after you deliver the goods or services, whichever is later, when no date is agreed. The later of the two dates wins. This is general information, not legal or tax advice, so check the rules where you and your client are based.

The practical rule: send the invoice the day the work is accepted, date it that day, and state the due date as a calendar date.

How do you move a client to shorter terms?

You can rarely force a change, but you can usually get one by changing what you ask for and when.

Change the default for new clients, not existing ones. A rate or term change on a running contract creates friction. A new client has no baseline, so your standard terms are simply your terms. Set net 15 in your proposal and statement of work, and it never feels like a demand.

Trade the term for something the client wants. If a client is used to net 30, offer to keep it in exchange for a deposit on the first invoice, or for a monthly retainer billed in advance. The deposit covers your risk, so the long term costs you less.

Use the renewal moment. When a contract renews or a new phase starts, say: "For the next phase I'm moving my invoices to net 15. Everything else stays the same." One sentence, no negotiation, framed as an admin update.

Offer a card or bank link. Much of what looks like slow payment is friction. A client who must find a vendor form, a check and a stamp pays slower than one who clicks a link. See how freelancers accept payments by ACH and cards.

Do not reach for a discount first. A 2/10 net 30 early payment discount sounds appealing, but it costs far more than it looks like. The math is in 2/10 net 30 for freelancers.

Here is a short message you can adapt:

Hi [name], quick admin note. Starting with this month's invoice my standard terms are net 15, with the exact due date printed on each invoice. Nothing else changes. If your accounts team needs a different process, tell me and I'll set it up.

What should you actually do next?

Make three decisions once, and stop revisiting them for every invoice:

1. Set your default. For most freelance developers that is net 15, with due on receipt plus a date for individuals and small founders.
2. Set your exceptions. Net 30 for companies whose AP process makes anything shorter unrealistic, but only if you invoice early and the amount is not large relative to your monthly income.
3. Set your reminder dates. Pre-due nudge for AP clients, first reminder the day after the due date for everyone else. The escalation steps are in late payment email templates for developers.

Then put the term on every invoice as a calendar date. Billable's invoice generator has due-date presets from on receipt through net 30, so the date fills in from the invoice date and you cannot forget it. It runs in your browser with no signup, so you can generate the invoice free and pick the preset that matches the client.

FAQ

Does due upon receipt mean payment the same day?

Not necessarily. It means payment is expected as soon as the client receives the invoice, but without a printed date there is no firm deadline. Many clients treat it as "within a few days." Add a specific date, such as three days out, so there is something concrete to follow up on.

Is net 30 counted from the invoice date or delivery?

By default it is counted from the invoice date, but contracts can say otherwise, and some legal systems measure from receipt of the invoice or delivery of the work. Remove the ambiguity by printing the due date as a calendar date and stating the starting point in your contract.

Can I set different terms per client?

Yes. Terms are part of each agreement, not a global setting. Many freelancers use a default of net 15 and make exceptions for clients with AP departments. Keep a short list of who is on which term so invoices stay consistent.

Is net 15 too aggressive for a new client?

No. The U.S. Chamber of Commerce guide notes that net 15 suits newer client relationships and smaller invoices. For a large first project, combine a deposit with net 15 on the balance rather than extending net 30 to someone you have no history with.