Net 30 means payment is due 30 days after the invoice date. Net 15 means 15 days, and Net 60 means 60 days. The number is simply a count of calendar days from the day you issue the invoice to the day the money is due.
How net terms work
“Net” refers to the full amount owed, and the number tells your client how long they have to pay it. So an invoice dated June 1 with Net 30 terms is due July 1. Change it to Net 15 and the same invoice is due June 16.
The most common terms you’ll see are:
- Due on receipt — pay now, no grace period. Best for new clients or one-off work.
- Net 15 — two weeks. A gentle cushion that still keeps cash moving.
- Net 30 — the default for most professional work and the term agencies and larger companies usually expect.
- Net 60 — generous, often used with enterprise clients who have slower accounting cycles.
Net terms are different from “due on receipt,” which carries no waiting period at all. Receipt means the clock starts and stops the moment the invoice lands. Net terms give your client a defined window, which feels professional and predictable for both sides.
When to use each one
There’s no universal right answer, but a few rules of thumb help. Shorter terms protect your cash flow; longer terms can make you easier to work with. Match the term to the relationship.
- Use Due on receipt or Net 15 for new clients, small jobs, or anyone you haven’t been paid by before.
- Use Net 30 as your standard for established clients and retainer work — it’s what most businesses expect.
- Reserve Net 60 for big accounts that explicitly ask for it, and weigh it against how long you can float the work.
A real-world example: you finish a brand refresh and invoice the studio on the 1st for $4,000 with Net 30. Payment is due on the 1st of next month. If they’re a brand-new client, you might instead choose Net 15 so you’re not waiting a full month to confirm they pay on time.
Tip: Shorter terms almost always get you paid faster. If a slow payer is hurting your cash flow, switch them from Net 30 to Net 15 on the next invoice rather than chasing every overdue bill.
How Fee-Lion handles it
You can set net terms once as a default and then override them on any single invoice when a client needs something different.
- Open Settings in the left sidebar and go to Preferences.
- Find payment terms and pick your default — for example, Net 30.
- Save. Every new estimate and invoice now uses that term automatically, and the due date is calculated for you from the invoice date.
Need a one-off exception? When you create or edit an invoice, change the payment terms field right on that invoice. Fee-Lion recalculates the due date instantly, so a Net 15 invoice for a new client and a Net 30 invoice for a regular client can live side by side without changing your default.
Because the due date drives your invoice aging report and any reminders you send, keeping terms accurate means your Reports always show who’s genuinely late versus who’s still inside their window. That makes it easy to spot a slow payer early instead of guessing.
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