The moment I switched from 'net 30' to 'net 15' for new clients

For two years I did net 30 for everyone and chased payments like crazy. Then I tried net 15 on three new clients in January, a small electrician and two landscapers in Cleveland. Every single one paid within 10 days, one even sent me a check in 5. Has anyone else found a shorter term makes people pay faster, or is it just the type of client I landed?

3 comments

3 Comments

lilyt231d ago

Might just be the type of client you landed. Small trades guys like electricians and landscapers are used to getting paid faster themselves, so they pay out faster. Try that with a bigger corporate client and they'll probably just ignore it or push back. Your mileage may vary big time on this one.

kelly_rivera1d ago

Double down on those local owner-operators too. They're usually the ones who appreciate fast payment and will throw more work your way if you're reliable. Big clients just sit on invoices til their accounting cycle is up no matter what you do.

the_cameron1d ago

Kelly, have you seen any of those smaller guys eventually get bought out by bigger firms and start dragging their feet on payments too? Or does the personal relationship usually keep things clean even as they scale up?