Payment Terms

What is Net-15?

Net-15 is a payment term meaning full payment is due within 15 days of the invoice date — a faster alternative to Net-30.

Definition

Net-15 is a payment term specifying that the full invoice amount is due within 15 calendar days of the invoice date. Like other Net payment terms, the countdown begins on the date the invoice is issued, not the date it is received or opened. At the end of 15 days, the net (full) amount is due. Net-15 is a relatively tight payment window and signals to the client that fast payment is expected. It is commonly used by freelancers and small businesses who need quicker cash flow turnaround or who are dealing with clients they trust to pay promptly.

When Freelancers Use Net-15

Net-15 is most commonly used in situations where the freelancer or vendor wants a faster payment cycle than Net-30 without the immediate urgency of due on receipt. It is a good fit for small to mid-sized projects where the invoice amount is modest and the relationship is strong but formal AP processes might make due on receipt unrealistic. Consultants working on short-term engagements, freelance designers or developers delivering discrete projects, and contractors billing for completed phases of work often use Net-15. It is also sometimes used as a stepping stone: a freelancer might start with Net-30 for a new client and move to Net-15 after establishing a reliable payment history.

Net-15 Example

Suppose you are a freelance copywriter. On March 1, you deliver a series of blog posts to a startup client and send them an invoice for $1,200 with Net-15 terms. Your invoice is dated March 1. Under Net-15, your client has until March 16 to submit full payment. If they pay on March 10, you are well within the window. If they pay on March 20, the invoice is four days overdue and you would be justified in sending a late payment notice or invoking any late fee terms in your contract.

Net-15 vs. Net-30

Net-15 and Net-30 differ primarily in the payment window. Net-30 is the industry standard for B2B transactions, particularly in the US, because it gives large organizations enough time to route payments through their accounts payable departments, which may process payments on a bi-weekly or monthly cycle. Net-15 is shorter and more demanding — it works best when you have an established relationship and the client has demonstrated they can pay within two weeks. Net-15 is also more appropriate for smaller invoice amounts where the risk of non-payment is lower and where waiting 30 days would create meaningful cash flow problems for your business. If a client pushes back on Net-15, Net-30 is a reasonable compromise.

Best Practices for Net-15 Invoicing

To get the most out of Net-15 terms, send your invoice immediately upon project completion — do not delay. Always include clear payment instructions, your accepted payment methods, and a late payment policy. Consider offering a small early payment incentive, such as 5% off if paid within 5 days, to encourage clients to pay even faster. Track your invoices diligently and send a polite reminder around day 10 or 11 (a few days before the due date) to prompt the client to process payment. If payment has not arrived by day 15, follow up promptly. For repeat clients who consistently pay on time, Net-15 can become a reliable standard that supports healthy cash flow without the friction of demanding immediate payment.

FAQ

Frequently Asked Questions

What does Net-15 mean on an invoice?

Net-15 means the client must pay the full invoice amount within 15 calendar days of the invoice date. If the invoice is dated January 1, payment is due by January 16.

When should I use Net-15 instead of Net-30?

Use Net-15 when you need faster cash flow, when working with clients who have a track record of paying quickly, for smaller invoice amounts where the risk is lower, or when you have an established, trust-based relationship with the client.

What is the difference between Net-15 and Net-30?

Net-15 gives clients 15 days to pay; Net-30 gives them 30 days. Net-15 is more aggressive and better suited for smaller amounts or trusted clients. Net-30 is the standard for B2B relationships with formal accounts payable processes.