A client's blunt feedback made me ditch my 30-day payment terms

I used to offer Net 30 to everyone, figuring it was standard. But a small client in Austin called me out after I sent my third reminder on a $2,400 invoice. They said 'you're basically giving me an interest-free loan and then acting annoyed I took it.' That stuck with me. I switched to Net 15 with a 2% discount for paying in 10 days, and I've seen payments come in 3 weeks faster on average. Has anyone else found a shorter window actually improved their cash flow?

3 comments

3 Comments

emma_jones1d ago

Yeah that client was REAL with you. I did the same thing - switched to Net 15 and started seeing money come in way quicker. People just pay faster when the deadline is closer.

dylanrodriguez1d agoMost Upvoted

Respectfully, I see it a little different @emma_jones. In my experience Net 30 is fine if you just stay on top of invoices and send reminders before the due date. People will pay when they want to pay regardless of the terms sometimes, so the shorter window can actually feel pushy and hurt relationships if you're not careful.

brooke4481d ago

Oh man, hard agree! I've had the exact same thing happen, @dylanrodriguez. I switched to Net 15 with a couple of my regulars who were dragging their feet on Net 30, and suddenly they start paying within a week. It's not about being pushy, it's just human nature (you know, people treat a closer deadline like a real one).