80% of my invoices went past 30 days before I changed ONE thing in my payment terms

I was digging through old QuickBooks data last month for my tax guy and noticed a pattern. Out of 47 invoices from last year, 38 were paid after the 30 day mark. Then I realized I never put a late fee clause in any of them. Changed my terms to 2% interest after 15 days and suddenly clients started paying on time. Has anyone else seen a big shift just from adding a penalty line?

2 comments

2 Comments

henry_anderson547d ago

Hated chasing payments, it is the worst part of running a business. Glad you found something that works. I might have to try that 15 day idea myself.

lisas787d ago

Oh wow, I was the same way honestly. I used to think shorter terms would just make people mad or push them away, but now I get it, it actually keeps things moving way faster.