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Tried net-30 terms for the first time and got burned on a $3,200 invoice
I had this client in Phoenix who always paid on delivery, but last quarter they asked for net-30 terms. I figured it was a solid relationship so I agreed. Sent the invoice on June 1st and didn't see a dime until August 12th after three follow up calls and a formal letter. They kept saying the check was in the mail but it wasn't. I learned that net-30 just gave them permission to drag their feet without any consequence. Now I charge a 2% late fee after 15 days and require a deposit for anything over $1,000. Has anyone else had net-30 backfire like this with a client you thought you could trust?
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corap618d agoMost Upvoted
Is one bad check really worth changing your whole business model over?
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rivera.hannah8d ago
One bad check from a new client taught me that lesson real quick, @corap61.
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blair_torres708d ago
The real lesson is that check should never have been the only security you had. A proper contract with a deposit structure would have caught that client before they even started work. A lot of small business owners skip the paperwork because it feels awkward, but that awkwardness saves you from chasing bad payments later.
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