Invoicing
Net 15 vs Net 30: Which Payment Terms Get You Paid Faster? (And Where the Law Caps It at 30 Days)
The payment term you put on an invoice isn't just a formality. It sets the clock a client's accounts payable team actually works against, and picking the wrong one costs freelancers weeks of cash flow every year.
What Net 15 and Net 30 actually mean
Net 15 means payment is due 15 days after the invoice date; Net 30 means 30 days. Both count from the date you issue the invoice, not the date the client opens or acknowledges it, a common point of confusion that leads freelancers to think a client is later than their agreement actually requires. "Net" just means the full amount is due by that date, with no discount applied; a term like "2/10 Net 30" adds a 2% discount if paid within 10 days, otherwise the full amount is due at 30.
Which one should you use as a freelancer
Shorter terms protect a solo freelancer's cash flow better, since you're typically covering your own expenses without the runway a larger business has. Net 15, or even Net 7 for smaller invoices, is reasonable to propose. Net 30 is the default many enterprise clients' accounts payable departments are built around, and some won't move off it regardless of what you ask for. The data backs up why this matters: 29% of freelance invoices are paid at least a day late, and invoices over $20,000 are three times more likely to be paid late than invoices under $100 (full sourcing on the statistics page). Longer terms compound that risk further.
| Net 15 | Net 30 | |
|---|---|---|
| Due date | 15 days after invoice date | 30 days after invoice date |
| Best for | Solo freelancers, smaller clients | Enterprise clients, larger orgs |
| Cash flow impact | Faster access to funds | Longer wait, more exposure |
| Common with | Individual clients, small businesses | Enterprise accounts payable departments |
The statutory ceiling: in some places you cannot agree to Net 60
This is the part missing from almost every Net 15 versus Net 30 comparison, and it changes the negotiation. Payment timing is no longer purely contractual in the three states with freelance protection statutes. Illinois is the strict one: its Freelance Worker Protection Act requires the contract to state the payment date or the mechanism for determining it, and that date "shall be no later than 30 days after the products or services are provided". Read plainly, that is a ceiling rather than a default. A Net 45 or Net 60 term for covered Illinois freelance work is not simply a bad deal, it is outside what the statute contemplates. California's SB 988 and New York's Freelance Isn't Free Act operate differently: they set a backstop rather than a cap, requiring payment by the date the contract names, or, where the contract names none, within 30 days of the work being completed. The practical upshot is the same in all three. Silence no longer favours the client. An invoice with no stated term used to drift indefinitely; in covered work it now defaults to 30 days, and Illinois adds real teeth: double the underpayment, statutory damages, and attorney's fees, with a two-year window to bring a claim. None of this is legal advice, and coverage depends on where both parties sit, so confirm your own position before relying on it in a negotiation.
| Jurisdiction | If the contract states a date | If it states none |
|---|---|---|
| Illinois | Must be no later than 30 days after delivery | Within 30 days of completing the services |
| California (SB 988) | That date governs | No later than 30 days after completion |
| New York (Freelance Isn't Free Act) | That date governs | No later than 30 days after completion |
| Everywhere else | That date governs | No statutory default - whatever you can argue |
How to shorten effective payment time without changing the term
If a client won't accept shorter stated terms, you can still improve actual payment speed: ask for a deposit upfront (30–50% is standard) so you're not carrying the full project cost until the end, split larger projects into milestone invoices instead of one lump sum at completion, and state a late-payment fee or interest clause in the agreement before work starts, not after an invoice is already overdue. A small early-payment discount (like 2% off if paid within 10 days on a Net 30 invoice) also nudges some clients to pay faster voluntarily, without changing what's contractually due.
Frequently asked questions
- Can I charge a late fee if a client pays after Net 30?
- Only if the late fee or interest rate was stated in the agreement or invoice terms before the work started. Adding one retroactively after an invoice is already overdue generally isn't enforceable and will read as a bad-faith surprise to the client. This isn't legal advice; check what's enforceable in your jurisdiction.
- Is Net 60 too long for a freelancer to accept?
- Generally yes. Net 60 ties up two months of cash for work you've already delivered, which is a real risk for a freelancer without significant reserves. It's more common in enterprise vendor relationships with dedicated finance teams than in typical freelance-client engagements, and it's worth pushing back on or offsetting with a larger upfront deposit.
Sources
- Illinois Department of Labor - Freelance Worker Protection Act
- California Legislative Information - SB-988, Freelance Worker Protection Act
- Epstein Becker Green - Freelance Isn't Free Act Takes Effect Throughout New York State
- Bonsai - Late freelance payment data (3 years of invoicing across 100,000+ freelancers)
- Clockify - Late Invoice Statistics
- Freelancers Union - The Costs of Nonpayment
