'Net 30' and 'Net 15' are two of the most common invoice payment terms — but choosing the wrong one for your business can strain your cash flow.
What Net 30 means
Net 30 means payment is due 30 days from the invoice date. It's an industry standard for many B2B relationships, especially with larger companies whose accounting cycles move slowly.
What Net 15 means
Net 15 shortens that window to 15 days. It's more common with freelancers, smaller clients, and businesses that need faster cash turnover.
Which should you choose?
- Choose Net 15 if you're a freelancer or small business relying on steady cash flow, or if you're working with a new client whose payment reliability is unproven.
- Choose Net 30 if you're working with larger companies that have fixed accounting cycles, or if shorter terms would make you seem unfamiliar with standard B2B practice in your industry.
You can also go shorter
Due on Receipt or Net 7 terms are increasingly common for freelance and small-scale service work, especially for new clients, since they reduce the risk of a long overdue balance.
The most important rule
Whichever term you choose, state it clearly and use it consistently. Clients adapt to whatever rhythm you set — the goal is predictability, not just speed.