Net 15 vs Net 30 Payment Terms Compared
Net 15 means payment is due 15 days after the invoice date; Net 30 means 30 days. Side-by-side cash-flow impact, when sellers push shorter terms, and how early-pay discounts interact.
Bottom line
Use the 15-day clock when you need faster cash conversion and buyers can fund it; use the 30-day clock when industry norms and buyer working-capital pressure matter more than a half-month acceleration. Labels usually run from the invoice date unless paperwork restarts the clock. Pair either schedule with a written early-pay discount only if the math beats your cost of capital. For tooling around scheduling payouts see bill payment software and AP automation software.
Is it right for you?
- Define the clock: invoice date vs delivery/acceptance date
- Model DSO impact of moving from 30 to 15 (or the reverse)
- Check whether buyers will demand a price cut for shorter terms
- Decide if 1/10 Net 30 style discounts beat your borrowing cost
- Put the term on the invoice and in the MSA/PO so AP queues match
Definitions
Net 15 means the full amount is due 15 days after the invoice date (unless the contract restarts the clock on delivery or acceptance). Net 30 uses a 30-day window. Neither label automatically includes an early-pay discount; those are written separately (for example 2/10 Net 30).
Both are trade-credit conventions, not a statute. Card networks, ACH rails, and AP software only execute what the invoice and approval workflow allow.
Side-by-side cash impact
| Dimension | Net 15 | Net 30 |
|---|---|---|
| Seller cash conversion | Faster; roughly half the open AR days vs Net 30 if buyers pay on time | Slower; standard SMB default in many B2B categories |
| Buyer working capital | Tighter; needs cash or a card/line sooner | More float; easier for inventory-heavy buyers |
| Collection risk window | Shorter exposure per invoice | Longer exposure; late pay compounds faster across volume |
| Negotiation friction | Buyers may ask for a lower unit price | Often accepted as the baseline term |
Example: $120,000/month of invoices paid on the due date. Steady-state AR is about half a month of sales on Net 15 (~$60k) versus a full month on Net 30 (~$120k). Stretching past due blows both numbers up; the term only sets the contractual target.
When to pick which
Prefer Net 15 when your COGS hits before the customer remits, margins are thin, or you are replacing a factoring habit with faster contractual pay. Prefer Net 30 when competitors quote 30, buyers are larger enterprises with rigid AP calendars, or shortening terms would trigger a price concession that wipes out the cash benefit.
Hybrid patterns are common: Net 15 for new or high-risk accounts, Net 30 for named strategic buyers, or Net 30 with a 1–2% discount if paid in 10 days. Put exceptions in writing so AP automation does not schedule the wrong due date.
FAQ
Does Net 15 include weekends?
Default to every day on the calendar. Switch to business days only when the agreement spells that out. If the due date lands on a bank holiday, many buyers pay the next banking day; say so in the terms if you need certainty.
Is Net 30 always better for buyers?
It improves their float, but sellers may raise price or tighten credit elsewhere. Compare total cost, not only the due date.
How do discounts interact?
A 2/10 Net 30 offer means 2% off if paid within 10 days, otherwise the full amount by day 30. Run the annualized cost before you assume it is “free money.”
What should appear on the invoice?
Invoice date, due date (computed), payment method, and the words Net 15 or Net 30 matching the contract.