Net 30 vs Net 15: Which Payment Terms Are Right for You?

Short answer: Use Net 15 as your default for freelance and small-project work. Switch to Net 30 only when the client's size or internal payment cycle requires it — not as a favour. Here's the full breakdown of what each term costs you, and exactly when to hold the line.

What Net 15 and Net 30 Mean

Net 15 — payment is due 15 calendar days after the invoice date.
Net 30 — payment is due 30 calendar days after the invoice date.

"Net" means the full amount is owed — no early-payment discount is built in unless you add one explicitly. The notation 2/10 Net 30 means: pay within 10 days and take 2% off; otherwise the full amount is due by day 30. That 2% annualises to roughly 36% APR — a meaningful incentive for clients with cash on hand.

Net 30 vs Net 15 vs Net 60 vs Net 90 — At a Glance

Term	Days to Pay	Typical User	DSO Impact	Late Payment Risk
Due on Receipt	1–3 days	Micro-transactions, urgent work	Minimal	Very low
Net 7	7 days	Digital products, subscriptions	Very low	Low
Net 15	15 days	Freelancers, small businesses	Low	Low
Net 30	30 days	Standard B2B (~45% of invoices)	Medium	Medium (~15% late)
Net 45	45 days	Mid-market companies	High	Higher
Net 60	60 days	Enterprise, government	Very high	Higher
Net 90	90 days	Large enterprise, government	Highest	Highest

The Cash Flow Cost of Net 30 vs Net 15

Clients tend to pay against your stated term, not ahead of it. That makes your payment terms one of the most direct levers on your cash position.

Example: 10 clients, €5,000/month each

• Net 15: €50,000 arrives around the 16th. By month-end, you've been paid for current-month work.
• Net 30: That same €50,000 arrives around the 1st of the following month. You are permanently one month behind on cash — without a line of credit to bridge it, that gap comes out of your reserves.
• Net 60: €100,000 is outstanding at any given time. On a €1M annual turnover, that means €166,000 tied up in receivables at all times.

The metric that captures this is Days Sales Outstanding (DSO) — the average number of days between issuing an invoice and receiving payment. Your DSO should sit within 10–15 days of your stated terms. If your terms are Net 30 and your DSO is 45, you have a collections problem, not just a terms problem.

Shortening terms from Net 30 to Net 15 — where the client relationship allows — is one of the highest-leverage moves available to a small business owner. It halves your DSO and doubles the velocity of your working capital without changing what you charge.

When Net 15 Is the Right Call

• Digital deliverables land immediately. A finished design file, article, or code repo is in the client's hands the moment you send it. There is no logistical reason they need 30 days to pay.
• Invoices under ~€3,000 rarely need approval chains. Larger invoices may require sign-off from a finance team. Smaller ones usually don't — 15 days is realistic.
• New or unverified clients. Before you have payment history with someone, shorter terms reduce your exposure if they delay or go silent.
• You have high operating costs. Agencies, studios, or contractors with monthly payroll, software subscriptions, or supplier payments can't afford a 30-day float on every project.

When Net 30 Is the Right Call

• The client's AP cycle requires it. Mid-size and large companies run payment batches weekly or biweekly. Net 15 may genuinely fall between runs, creating friction even when the client intends to pay on time.
• The contract is large. For projects above €10,000, a 30-day window is expected and reasonable — the client may need to stage internal approvals.
• You're working with enterprise or government. These clients may default to Net 45 or Net 60 as policy. Net 30 is often already a negotiation win.
• Competitive positioning matters. If your market segment runs on Net 30 and you insist on Net 15, you may lose contracts to suppliers who match the norm.

Net 60 and Net 90 — When to Accept, When to Push Back

Enterprise and government clients frequently request Net 60 or Net 90 as standard policy. Before accepting:

• Calculate the working capital cost. On a €20,000 contract, Net 90 means €20,000 unavailable for three months. If your cost of capital is 8%, that's ~€400 in implicit financing cost — which should factor into your price.
• Request a partial deposit (20–30%) upfront. Most large clients can accommodate this even within a Net 60 framework.
• Consider invoice factoring if you carry multiple large Net 60–90 accounts. Factors typically advance 80–90% of the invoice value immediately, at a cost of 1–5% — often cheaper than the opportunity cost of waiting.
• Get milestone payments written into the contract. Segment the work into phases with invoices at each milestone, so you're never 90 days away from all your cash on a single project.

How to Negotiate Payment Terms

1. Set terms in the contract, not just on the invoice. Terms agreed before work starts are legally cleaner and far harder to dispute once you've delivered.
2. State your default plainly. "Our standard terms are Net 15 for projects under €5,000. We can discuss Net 30 for larger engagements." This is professional, not aggressive.
3. Offer a deposit trade. If a client pushes for Net 30, counter with Net 30 plus 25–30% upfront. You get working capital immediately; they get their preferred term.
4. Use early-payment discounts selectively. 2/10 Net 30 works best with cash-rich clients who have CFOs thinking in APR. For smaller clients, it often goes unnoticed.
5. Tier your terms by relationship. Net 15 for new clients; Net 30 for established clients with a clean payment record. Reward history, don't assume it.

Which Terms Should You Use? A Practical Framework

Client Type	Recommended Terms	Notes
Individuals / consumers	Due on Receipt or Net 7	Add deposit for custom work
Startups and sole traders	Net 15 + 30–50% deposit	Protect yourself early
Small businesses (1–20 staff)	Net 15 default, Net 30 on request	Most can handle Net 15
Mid-size companies (20–200 staff)	Net 30	Match their AP cycle
Enterprise / government	Net 30–45, negotiate deposits	Don't accept Net 60+ without milestone payments

One rule applies at every tier: write the exact due date on every invoice. "Net 15 (due by 7 June 2026)" removes all ambiguity about when the clock starts — and gives you a clean anchor point if you need to chase payment.

Early Payment Discounts (2/10 Net 30)

An early payment discount offers the client a percentage off the invoice total if they pay within a shorter window. The most common structure is 2/10 Net 30: 2% discount if paid within 10 days, full amount due in 30.

That 2% over 20 days annualises to approximately 36% APR — a compelling incentive for any client with available cash. Before offering one, decide whether you can absorb the revenue reduction. On a €10,000 invoice, 2% is €200. If that buys you 20 extra days of liquidity that you'd otherwise borrow to cover, it may be worth it. If your cash position is solid, skip it — you're essentially paying clients to do what they should do anyway.