Net 30, Net 15, due on receipt: payment terms explained
Payment terms are the fine print that decides when money actually reaches your account. The jargon is simple once decoded — and a few small wording choices measurably shorten the wait.
Decoding the jargon
| Term | Meaning | Typical use |
|---|---|---|
| Net 30 | Full amount due 30 days after the invoice date | The default in most B2B work; large companies often insist on it |
| Net 15 / Net 7 | Due 15 or 7 days after the invoice date | Freelancers and small studios with shorter cash cycles |
| Due on receipt | Payable as soon as the invoice arrives | Small jobs, first-time clients, retail-like services |
| 2/10 Net 30 | 2% discount if paid within 10 days; otherwise full amount in 30 | An incentive worth offering only if your margin allows it |
| 50% upfront | Half before work begins, half on delivery | Projects with significant time investment or new clients |
One subtlety people miss: the clock starts on the invoice date, not the day the client opens the email. Invoice promptly — every day you wait to send is a day added to Net 30.
Which terms should you choose?
- Default to Net 30 with businesses — it matches their payment runs, and fighting it costs goodwill. If cash flow is tight, propose Net 15; many clients simply say yes.
- Use “due on receipt” sparingly. It sounds fast, but with no concrete date it gives some payers nothing to schedule. A dated deadline outperforms an urgent vibe.
- Take deposits for big projects. 30–50% upfront filters out non-serious clients and funds the work. Invoice the deposit like any other invoice.
- Late fees: state them, apply them gently. A line like “1.5% monthly late fee on overdue balances” mostly works as a deterrent. (Check what your jurisdiction allows.)
Wording that gets you paid faster
- Write the actual date. “Due August 4, 2026” beats “Net 30” — no math, no ambiguity, and it drops straight into the client's payment schedule. QuietBill computes the date field for you; put the sentence in Terms.
- Say please and thank you. Genuinely. Analyses of large invoice datasets have repeatedly found polite invoices get paid measurably faster.
- Make paying self-service. Bank details or a payment link on the invoice itself — if the client must email you to ask how to pay, add three days.
- Invoice the day you deliver. The single highest-leverage habit. Delivery day is when your work's perceived value peaks.
When an invoice goes overdue
Send a short, friendly nudge the day after the due date — most late payments are forgetfulness, not malice. Re-attach the invoice PDF so nobody hunts through their inbox. A week later, follow up referencing the invoice number and the late-fee line if you use one. Keep every message polite and factual; you're building a paper trail, not a feud.
Set your terms in the template
The free QuietBill generator has a due-date field and a terms box — set them once, and every new invoice inherits your defaults.
Open the invoice generator