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Switched from net 30 to payment on delivery and my cash flow changed completely
For about 7 years I always billed clients on net 30 terms because that's what everyone in my field did. But after getting stiffed on a $1,200 invoice from a remodeler back in March of 2023, I decided to switch things up. Now I ask for payment right when I finish the job, or at least 50% upfront for bigger projects. Some clients grumbled at first, but the ones who pay on time actually prefer it because they don't forget about the bill later. My receivables went from averaging 45 days to under a week. Has anyone else dumped net terms entirely and seen their late payments disappear?
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black.oliver7d ago
Yeah "COD and never looked back" is exactly how I feel now too. Honestly I think net 30 is just this old habit people follow without thinking about it. Once you break that cycle you realize how much easier it is to just get paid right away. I mean some people worry about looking unprofessional but actually clients seem to respect it more when you're clear about payment upfront. And like you said the ones who pay on time prefer it because they don't have to keep track of another bill. It just cuts out all that awkward followup and waiting around.
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ruby_bell477d ago
Wait you had a $1200 invoice just not get paid? That's INSANE. I would have LOST my mind over that. I do small handyman stuff and even a $300 no-show makes me furious. Honestly that remodeler probably knew exactly what they were doing too. Good for you for switching up your whole system because of it.
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