· 2 min read
Invoice Payment Terms Explained: Net 15 vs Net 30 vs Net 60
What do Net 15, Net 30, and Net 60 mean on an invoice? This guide explains all common payment terms and which is right for your freelance business.
When you send an invoice, the payment term tells your client when they’re expected to pay. Get this wrong and you either strain client relationships or wait months for money that should have arrived weeks ago.
What Does “Net” Mean on an Invoice?
“Net” refers to the net amount due — the full balance after any discounts. “Net 30” means the client owes the full amount within 30 days of the invoice date.
Common Payment Terms
Due on Receipt
Payment is due immediately upon receiving the invoice. In practice, this means whenever the client gets around to it.
Best for: Small, established clients with strong payment histories. Not recommended as a default.
Net 15
Payment due within 15 days. The sweet spot for many freelancers.
Best for: Most individual freelancers and consultants billing individuals or small businesses.
Net 30
Payment due within 30 days. The most common B2B payment term.
Best for: Larger corporate clients whose accounts payable departments work on monthly cycles.
Risk: A 30-day payment cycle means 6 weeks from starting work to getting paid (2 weeks work + 30 days). Budget accordingly.
Net 45 and Net 60
Payment due in 45 or 60 days. Common in large corporations.
Risk: 60-day terms mean you might finish work in January and not see money until late March.
The Early Payment Discount
Incentivize faster payment with: 2/10 Net 30
This means: 2% discount if paid within 10 days; otherwise full amount due in 30 days.
A 2% discount on ₹50,000 is ₹1,000 — a meaningful incentive for a client to pay faster.
Which Payment Term Should You Use?
| Situation | Recommended Term |
|---|---|
| New client, unknown payment history | Net 15 with 50% deposit upfront |
| Regular small business client | Net 15 or Net 30 |
| Large corporation | Net 30 |
| Ongoing monthly retainer | Net 15 billed first of month |
The Deposit Rule
For any project over ₹25,000, require a 50% deposit before starting work. This isn’t aggressive — it’s standard.
Write the Actual Date
Instead of writing “Net 30,” write the actual due date: “Payment due: 31 May 2026.”
A specific date is harder to ignore than a term that requires math. In Wageasy, the due date is automatically calculated when you set your payment terms.
Related guides:
- invoicing
- freelancing
- payments
- payment terms
