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Net 15, Net 30, and Invoicing in Foreign Currencies

Two topics that frequently trip up freelancers and small businesses: choosing payment terms and handling invoices in a foreign currency. Neither is complicated once you understand the basics — but getting them wrong can create confusion, disputes, or cash flow problems.

What Payment Terms Actually Mean

Payment terms tell your client when payment is due relative to the invoice date. "Net" simply means the full amount (net of any deductions) is due within a set number of days.

• Due on Receipt: payment is expected as soon as the client receives the invoice
• Net 15: full payment due 15 days from the invoice date
• Net 30: full payment due 30 days from the invoice date
• Net 60: full payment due 60 days from the invoice date

These terms are a business arrangement between you and your client — not a legal mandate. They should reflect what both parties have agreed to, ideally in writing before the work begins.

When Net 15 Tends to Work Well

Net 15 is commonly used by freelancers working on shorter projects, one-time jobs, or with newer clients. A tighter window means faster cash flow, which matters when you're running several projects at once. Many independent contractors use Net 15 for invoices under a certain amount, reserving longer terms for larger engagements where the client may need more lead time to process payment internally.

When Net 30 Tends to Work Well

Net 30 is standard at many larger companies, agencies, and organizations with formal accounts payable departments. These clients often process invoices in weekly or bi-weekly payment runs. Requesting Net 15 from a company whose AP cycle runs every 30 days can create friction, even if the client wants to pay. If your client is a larger organization, Net 30 may simply be more realistic about how their finances operate.

Other Terms Worth Knowing

"Due on Receipt" works well for small, immediate jobs — a quick design fix, a short consulting call — where there's no reason to extend a payment window. Net 60 is less common in freelance work but does appear in some agency or corporate contracts. Milestone-based invoicing — sending separate invoices tied to project phases rather than one invoice at the end — is another approach many freelancers use on longer projects to maintain steady cash flow throughout.

If you include a late fee in your payment terms (for example, "1.5% per month on overdue balances"), be aware that the enforceability of such fees varies by jurisdiction and may depend on whether the client agreed to them in advance. For guidance on late fees in your specific situation, consult a qualified attorney.

Invoicing in a Foreign Currency

If your client is based in a different country, you'll need to decide which currency to use on the invoice. There's no universally correct answer — it depends on your agreement with the client and your own preferences. Here are the common approaches:

Invoice in your own currency. The simplest option for you. You know exactly what you'll receive, and the client handles any currency conversion at their end. This works well when you have the leverage to set the terms.

Invoice in the client's currency. This can make payment easier for the client — they know exactly what to transfer — but you take on the exchange rate risk. If there's a delay between when you send the invoice and when it's paid, the rate may shift and you'll receive more or less than expected in your home currency.

Practical steps when invoicing across currencies:

• Agree on the currency before the work begins — document it in a proposal or email
• Select the appropriate currency in the invoice generator before entering any amounts (The Free Invoice supports USD, EUR, GBP, and JPY)
• State the amount explicitly on the invoice with the currency symbol (e.g., "EUR 3,200.00") to avoid any ambiguity
• If you've agreed on a fixed exchange rate or a specific rate source, note it on the invoice or in your agreement

The tax treatment of foreign income, VAT or GST obligations on international transactions, and any currency controls that may apply are complex topics that vary significantly by country. Consult a qualified accountant or financial professional for guidance specific to your situation.