What Is the Difference Between Net 15, Net 30, and Due on Receipt?
Net 15, Net 30, and Due on Receipt Explained
Net 15, net 30, and due on receipt are invoice payment terms that tell a buyer exactly when payment is due after you send the invoice. Due on receipt is immediate. Net 15 gives the buyer 15 days. Net 30 gives the buyer 30 days.
That sounds small on paper. It is not small in your bank account.
If a boutique places a $1,200 wholesale order, due on receipt means you collect before you start carrying that receivable. Net 15 means you may wait two weeks. Net 30 means you may wait a full month after invoicing, which is a very different setup if you are paying for packaging, labor, ingredients, or print costs upfront.
If you're also deciding when to invoice buyers versus requiring payment upfront, the cleaner move is to set a policy before the next bulk inquiry lands in your inbox.
What Are Net 15, Net 30, and Due on Receipt?
Due on receipt, net 15, and net 30 are standard wholesale payment terms used on invoices and purchase orders. They tell the buyer when payment must be made, and they tell you how much trade credit you are extending through a trade account.
Here is the plain-language version:
- Due on receipt: Payment is expected right away, usually the same day the invoice is received.
- Net 15: Payment is due 15 calendar days after the invoice date.
- Net 30: Payment is due 30 calendar days after the invoice date.
- Trade account: An approved wholesale account that may get access to invoice terms, tiered pricing, MOQ rules, and RFQ workflows.
- Purchase order: A buyer's formal order document, often sent before the invoice.
- Net terms: Credit terms that let the buyer pay after the order is approved, shipped, or invoiced.
A lot of merchants first see these terms when a stockist emails something like, "Can you do wholesale pricing and net 30?" That question is really two questions. First, what is the wholesale price? Second, are you willing to wait 30 days to get paid?
That second part is where many small brands get loose. A salon, gym, gift shop, or small retail chain may sound legitimate, but invoice terms still need a policy behind them. If you sell on OpoShop, that policy should be tied to buyer approval, not handled as a one-off favor over email.
Why Do Payment Terms Matter in Wholesale Ecommerce?
Payment terms matter because they shape buyer trust, cash flow, and risk at the same time. A generous term can help close a wholesale order, but it also turns your brand into the one financing that order.
That tradeoff shows up fast for DTC brands adding B2B. A beauty brand may get a $900 order from a new spa. An apparel brand may get a $2,400 order from a boutique. A food and beverage brand may get a $1,800 reorder from a local market. In each case, the payment term changes when cash arrives, even if the order value stays the same.
Here is where the pressure usually lands:
- Buyer trust: Some retailers expect invoice terms, especially if they place purchase orders regularly.
- Cash flow: Longer terms mean your cash is tied up longer after production or fulfillment.
- Credit risk: Net 30 gives a buyer more time, but it also gives you more exposure if they pay late.
- Conversion: Some approved buyers will place larger orders if they are not forced to pay upfront.
- Operations: Clear terms reduce the back-and-forth that happens when wholesale lives in spreadsheets and inbox threads.
And this is the part a lot of brands miss. Payment terms are not just accounting language. Payment terms are a sales policy.
If you run wholesale through your OpoShop store, the goal is not to hand out net 30 because it sounds more professional. The goal is to offer terms that fit the buyer, the order, and your own ability to absorb delay.
How Do You Decide Which Payment Terms to Offer?
The best way to choose between due on receipt, net 15, and net 30 is to look at buyer history, order size, margin, and how much risk your business can carry. New wholesale buyers do not need the same terms as repeat stockists with a clean payment record.
A simple policy beats a case-by-case scramble every time. If you are still handling wholesale over email, this is where things usually get messy. One buyer gets net 30 because they asked confidently. Another buyer prepays because nobody offered options. That is not really a policy. That is improvising.
1. Start with buyer history, not buyer promises
A new reseller asking for net 30 has not earned the same trust as a repeat stockist who has paid six invoices on time. That does not make the new buyer bad. It just means you do not know their payment behavior yet.
A cautious setup is normal. Due on receipt for the first order, then net 15 after successful payment, then net 30 only after a track record. That kind of ladder is clear and easy to defend.
2. Use order size to set your risk ceiling
A $450 test order for a gift shop is one thing. A $4,800 opening order for a small retail chain is another.
If a buyer wants larger quantities, lower unit pricing, and longer terms all at once, stop and look at the full picture. Volume pricing, tiered pricing, and payment terms stack together. Every concession has a cost.
3. Keep the policy tied to your workflow
If your RFQ process already includes MOQ, line sheet pricing, and quote approval, payment terms should live there too. That way the buyer sees the terms before the final order is placed.
For OpoShop merchants using a wholesale flow, this matters a lot. The cleaner your quote-to-order workflow is, the fewer payment surprises you create later.
Weak: "We offer flexible wholesale terms." Stronger: "New trade accounts pay due on receipt. Approved buyers may qualify for net 15. Repeat wholesale accounts with on-time payment history may request net 30."
That second version does the job. It tells the buyer what the rule is.
Need a cleaner way to approve buyers, manage RFQs, and apply payment terms on wholesale orders? Bulkroom is built for OpoShop brands running B2B alongside DTC.
Net 15 vs Net 30 vs Due on Receipt: Which Is Best for Different Buyers?
Due on receipt is usually best for new wholesale buyers, net 15 works well for lower-risk approved accounts, and net 30 fits established buyers who have earned more flexibility. The right answer depends less on the term itself and more on who the buyer is.
Here is a side-by-side view:
| Payment term | Due on Receipt | Net 15 | Net 30 |
|---|---|---|---|
| Payment timing | Immediately after invoice | 15 days after invoice date | 30 days after invoice date |
| Buyer friendliness | Lowest | Medium | Highest |
| Risk to brand | Lowest | Medium | Highest |
| Best fit | New boutiques, first-time stockists, custom or made-to-order orders | Approved buyers, smaller repeat orders, moderate trust | Established retail accounts, repeat resellers, buyers with strong payment history |
A few real-world examples make this easier to place:
- Apparel brand selling to a new boutique: Start with due on receipt, especially if the order includes custom sizing runs or low-margin pieces.
- Beauty brand selling to a salon that has reordered twice: Net 15 can be a fair middle ground.
- Home goods brand selling to a repeat gift shop: Net 15 or net 30 can work if order history is clean.
- Food and beverage brand selling to a local retailer: Due on receipt or net 15 is often safer because perishability and tighter margins leave less room for delay.
- Print-on-demand brand handling a corporate gifting run: Due on receipt is usually the cleanest option because goods are often produced for that order.
How does net 30 differ from net 15? Mostly in exposure. On a $2,000 invoice, net 15 means your receivable is open for two weeks. Net 30 means it stays open for a month. That extra 15 days matters if you are paying suppliers, covering payroll, or trying to reorder inventory.
Common Mistakes Brands Make With Wholesale Payment Terms
The most common mistake is giving net 30 to every buyer who asks for it. That feels accommodating in the moment, but it can turn a small wholesale channel into a collection problem.
A few others show up all the time:
- No buyer vetting: A trade account should be approved before a buyer gets wholesale pricing or invoice terms.
- No written policy: If terms live only in email, they will be remembered differently by each side.
- Same terms for everyone: New boutiques, repeat stockists, and larger distributors should not all be treated the same.
- Ignoring MOQ and margin: A low MOQ, aggressive keystone pricing expectations, and long payment terms can leave very little room.
- Offering terms too early: A first order is often the wrong place to extend your longest credit window.
- Forgetting collections work: If a buyer pays late, someone has to follow up. That someone is usually you.
Cash flow problems often start with a sentence that sounded harmless at the time: "Sure, net 30 is fine."
It may be fine. But only if the buyer is approved, the order size makes sense, and your business can wait.
If your OpoShop store already handles DTC well, do not let wholesale become the messy side channel where rules disappear. Clear B2B terms protect the relationship because the expectations are plain from the start.
What We Recommend for OpoShop Brands Starting or Growing Wholesale
We recommend starting tighter than you think, then loosening terms only after a buyer has earned it. Most small brands are better served by due on receipt for new trade accounts, net 15 for approved repeat buyers, and net 30 only for stockists or resellers with a solid payment history.
That approach works well for brands selling to boutiques, salons, gyms, gift shops, and small chains because it matches terms to trust. It also fits how wholesale actually happens for many OpoShop merchants. A buyer applies for a trade account, gets approved, sees wholesale or tiered pricing, sends an RFQ, and then the merchant reviews the request before the final order is placed.
That RFQ step matters. It gives you a natural place to confirm MOQ, volume pricing, line sheet details, and payment terms before the order hits checkout. If a boutique asks for 120 units at keystone-friendly pricing and wants net 30 on a first order, you can counter with due on receipt or net 15 instead of guessing your way through an email chain.
Here is a clean starting framework:
- New trade account: Due on receipt.
- Approved buyer with one or two clean orders: Net 15.
- Repeat buyer with reliable history: Net 30, if your cash flow can support it.
- Custom, seasonal, or made-to-order work: Due on receipt, even for familiar buyers.
- Large purchase order from a small chain: Review manually through the RFQ before extending terms.
For OpoShop brands, the best setup is one where payment terms are part of the wholesale workflow, not a separate side conversation. That is how you stop losing details between inbox threads, spreadsheets, quote revisions, and final orders.
If you want a more organized way to run approved-buyer wholesale on top of your OpoShop store, start with a workflow that keeps buyer approval, RFQs, negotiated pricing, and payment terms in one place.
Best answer: Due on receipt is the safest default for new wholesale buyers because you get paid right away. Net 15 is a sensible middle ground for approved buyers who have started to build trust. Net 30 should be earned, not assumed, because longer payment terms help the buyer but put more strain on your cash flow.
FAQs
Is net 15 better than net 30 for small brands?
Yes. Net 15 is usually better for small brands because it shortens the wait for cash while still giving approved buyers some flexibility. Net 30 can work, but small brands should usually reserve it for repeat wholesale accounts with a strong payment record.
Does due on receipt still count as invoice terms?
Yes. Due on receipt is still an invoice term because the invoice states when payment is due. The difference is that the due date is immediate rather than 15 or 30 days later.
Should new wholesale buyers get due on receipt first?
Yes. Due on receipt is the safest starting point for new wholesale buyers because it limits trade credit risk until the buyer has an established history. A buyer can move to net 15 or net 30 later if the relationship proves reliable.
Can I offer net 30 only to approved trade accounts?
Yes. Offering net 30 only to approved trade accounts is a smart policy because it ties longer payment windows to buyer vetting and order history. That is a much cleaner approach than giving every applicant the same terms.
What happens if a wholesale buyer asks for longer terms than I offer?
You can say no, or you can counter with a shorter term that fits the account. A common move is to offer due on receipt for the first order, net 15 after successful payment, and revisit net 30 once the buyer has proven dependable.
How do I choose payment terms without hurting cash flow?
Start with the amount of delay your business can actually absorb, then match terms to buyer trust. If waiting 30 days on a $3,000 order would strain purchasing, payroll, or production, net 30 is too loose for that account right now.
Want to stop handling wholesale terms over email and spreadsheets? See how Bulkroom helps OpoShop merchants approve buyers, negotiate quotes, and place wholesale orders with the right payment terms.
