Guides

Net 15 vs Net 30: payment terms for consultants (and the wording to use)

Payment terms decide when you get paid, not just when the client “should” pay. Pick them on purpose, write them the same way every time, and follow up on a schedule.

What the common terms mean

• Due on receipt — payable when the invoice arrives. Fine for small one-off jobs; in practice most clients still pay within a week or two.
• Net 7 / Net 15 — due 7 or 15 days after the invoice date. A good default for independent consultants billing monthly.
• Net 30 — due 30 days after the invoice date. Common with larger companies whose accounts-payable team runs on a monthly cycle.
• Net 45 / Net 60 — usually a large client's standard, not yours. Accept them knowingly: on a monthly retainer, Net 60 means you are always carrying two months of unpaid work.

The day count starts from the invoice date, so the date you send matters as much as the terms. An invoice sent on the 1st with Net 15 is due on the 16th; the same invoice sent on the 9th is due on the 24th.

How to choose terms for each client

1. Start from your cash needs. Add up a typical month of costs. If one client paying 30 days late would make that month uncomfortable, Net 30 is too long for your default.
2. Ask about their payables cycle before the first invoice. “How do invoices get paid on your side — is there a portal, a PO number, a payment run date?” A company that pays on the 15th and the 30th will pay a Net 15 invoice faster if it arrives before the run.
3. Match the terms to the work. Retainers are paid for availability, so bill them at the start of the month on short terms. Hourly work is billed in arrears, so Net 15 keeps the gap between doing the work and being paid under seven weeks.
4. Write the terms in the agreement, then repeat them on every invoice. Terms that only live in an email thread are easy to forget on both sides.

Wording you can copy

On the invoice, show the terms and the actual due date — a date is harder to misread than “Net 15”:

In the consulting agreement:

If you want a late fee, check what your state allows first and put the exact rate in the agreement — a fee that isn't agreed in writing is hard to collect and easy to resent.

A follow-up schedule that works

Most late invoices are not disputes; they are invoices that got stuck. A calm, predictable sequence clears most of them:

• 3 days before the due date (larger invoices only): “Just confirming you have everything you need to process invoice [#] by [date].”
• 1 day after the due date: a short, friendly reminder with the invoice link and payment details.
• 7 days late: reply on the same thread and ask who in accounts payable you should follow up with.
• 14–30 days late: a direct note that refers to the agreement's late-payment clause, and a phone call.

Keep each message short and include the invoice link every time, so whoever reads it can pay without searching for the original email.

Mistakes that slow payment down

• Sending the invoice to your day-to-day contact instead of the person who pays bills.
• Missing a PO number or vendor ID the client's system requires — ask for it up front.
• Inconsistent invoice dates: billing on the 1st one month and the 12th the next makes your due dates impossible for the client to plan around.
• Vague line items that trigger questions. A clear summary of the work gets approved faster.

How Feewright does it

Set your default payment terms once in Settings and every invoice gets a due date from its invoice date. Invoices can be drafted for you on the 1st of each month, so your dates stay consistent. When an invoice passes its due date it is marked overdue, and one tap drafts a polite reminder email with the invoice link and your payment instructions. Record full or partial payments as they arrive and the client's invoice page shows what has been paid and what is still due.