That stat about 30 day payment terms killing small freelancers shocked me

I was reading a thread on r/freelance last night and saw someone post that 60% of freelancers who accept net-30 terms end up chasing payments past 60 days. That made me dig into my own contracts and realize I've been leaving $4,000 sitting out there for 3 months on average. How do you guys handle net-30 vs demanding upfront deposits without losing the job?

3 comments

3 Comments

evan_grant702d ago

Hell yeah, @sanchez.ivan is totally right about that pushback test! I started doing exactly the same thing - 50% upfront and the rest at delivery - and found most clients don't even flinch, especially if you frame it as standard practice for your workflow. The ones who do fight it usually end up being the slow payers anyway, so it's a good filter to find clients who actually respect your time.

fionat553d ago

Feel you on this, those net terms are brutal for us small guys trying to stay afloat.

sanchez.ivan3d ago

But like, have you actually tried just pushing back on net-30 from the start? I used to just accept whatever terms they threw at me cause I was scared of losing the gig, then I realized most of those companies are just testing to see what they can get away with. I mean, I've started countering with 50% upfront and the rest on delivery, and maybe 70% of clients just agree without even blinking. The ones who push back hard on that are usually the same ones who'll drag their feet on payment anyway, so honestly you're not losing much. Plus if they're a legit business they should have cash flow to cover a deposit, it's not that crazy of a request.