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Spent 3 years invoicing clients on the 30th day due and wondering why I always felt broke.
I switched to net-15 billing after a client in Denver paid me 45 days late on a $2,800 job and I couldn't cover my material order. Has anyone else made that switch and seen a real difference in cash flow?
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patricia_hill602d agoMost Upvoted
Oh, I feel this one deep in my bones. It took me getting burned on a $1,500 carpet cleaning job that dragged out to 50 days before I finally switched to net-15 myself. The difference was like night and day, honestly. I went from constantly juggling bills and hoping checks showed up to actually knowing what money I had coming in within two weeks. It's still not perfect because some clients will always drag their feet, but at least now I'm not chasing payments for weeks on end. You've made a smart move there, and I hope it brings you the same relief it brought me.
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sandragrant2d agoRising Star
Whoa, I gotta respectfully disagree here. Net-15 sounds nice in theory but it just doesn't work for everyone. Some clients see tighter terms and think you're desperate or untrustworthy. I tried net-15 for three months and lost two steady accounts because they said my terms were "too aggressive" compared to the next guy. Now I'm back to net-30 with a 5% late fee after 45 days. Works better for me honestly.
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Funny enough I just read a article from the National Association of Credit Management that said most small businesses that switch to net-15 see a 30% improvement in cash flow within six months. But like I said on another thread, your mileage may vary big time based on your client base. I had a buddy who did landscaping and net-15 worked great for him because his clients were mostly homeowners paying with credit cards. For me with commercial clients, net-15 made them suspicious and I lost work. Now I do net-30 but I send a friendly reminder text at day 21 and a invoice reminder at day 28. I'm not saying your choice is wrong, just that it depends heavily on who you're billing.
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