Had a total lightbulb moment at a trade show in Denver about payment terms.

I was chatting with another contractor who said he puts 'payment due upon receipt' on every single invoice, no exceptions. He explained that it sets clear expectations from the start and cuts down on the 'I'll pay you next cycle' excuses. Has anyone else tried this and seen faster payments?

3 comments

3 Comments

drews5512d ago

My uncle runs a small HVAC business in Phoenix. He switched to net zero terms on his invoices about two years back. Honestly, he said it was rough for the first few months with some pushback, but now his average payment time dropped from 45 days to under two weeks. The key was he stuck to it and stopped letting people talk him into net 30.

gray_hall411d ago

Makes total sense. That early pushback is just clients testing the new rule. Once they see you won't bend, they adjust their own process to pay you first.

kevinallen11d ago

Yeah, I saw a post from @gray_hall4 about that... sticking to your guns really does work.