What does Net 30 mean exactly?

Net 30 means the full invoice amount is due within 30 calendar days from the invoice date (unless your jurisdiction or contract specifies the date of receipt instead).

Is Due on Receipt actually enforceable?

It signals immediate payment but doesn't override consumer protection or contract terms. In most B2B contexts, clients still take a few days to process. The statutory maximum payment period in your country (e.g. EU Late Payment Directive sets 30/60-day defaults) still applies if there's a dispute.

Should I use Net 15 or Net 30?

Net 15 typically gets you paid faster without sounding aggressive. Use it as your default for small business clients. Reserve Net 30 for larger corporate clients with formal accounts payable processes.

Can I charge a late fee if I don't mention it on the invoice?

It varies by jurisdiction. In the EU, statutory late interest and recovery costs apply automatically under the Late Payment Directive even without a contract clause. In the US, you generally need to have agreed on the late fee in advance.

What payment term do most freelancers use?

Industry data from FreshBooks and Xero suggests freelancers increasingly default to Net 14 or Due on Receipt rather than the legacy Net 30 — and report being paid faster as a result.

Should I offer an early payment discount?

Usually no. A 2% discount for paying 20 days early translates to ~36% annualised — far more expensive than a short-term loan. Use late fees instead.

Net 30 vs Due on Receipt: Which Payment Term Should You Use?

Net 30, Net 15, Due on Receipt — what they really mean, when each makes sense, and how the right payment term can cut your average days-to-pay.