Net 15
Payment terms requiring payment within 15 days.
Net 15 requires full payment within 15 days of the invoice date, providing faster cash collection than Net 30. It's commonly used by businesses that need quicker cash turnover, smaller service providers, or for smaller invoice amounts where shorter terms are standard. Net 15 terms should be clearly communicated and agreed upon before work begins.
Example
A freelance graphic designer uses Net 15 terms for all projects under $2,000, ensuring she receives payment within two weeks of delivering the completed work.
Why It Matters for Your Business
Shorter payment terms like Net 15 get cash in the door faster, which is especially important for freelancers and small businesses with tight cash flow.
Related Terms
More Invoicing Terms
AR Aging
A report categorizing outstanding invoices by age.
Billing Cycle
The recurring period between billing statements.
Credit Memo
A document reducing the amount owed by a customer.
Days Sales Outstanding
Average days to collect payment after a sale.
Invoice
A document requesting payment for goods or services.
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