Lost 3 clients after switching to net-60 payment terms

Back in March I changed my invoicing from net-15 to net-60 because three bigger clients asked for it. They said it matched their accounting cycle. Fast forward to July and I'm still waiting on payments from two of them. One guy actually laughed when I called to follow up and said 'oh we pay on 90 days now, sorry.' That's $4,200 total sitting out there. I switched back to net-15 for all new clients last week and already lost a potential project because they wanted net-60. Anyone else had a client stretch terms way past what you agreed on?

3 comments

3 Comments

david_palmer9d ago

Wait, the guy actually laughed at you? That's crazy lol. Like bro, that's not just awkward, that's straight up disrespectful to laugh at someone asking for money they're owed. Makes me wonder if these bigger clients are using net-60 as a way to just stall forever. I had something similar happen with a client who promised net-30 and then started ignoring my emails after day 45. Ended up having to send a certified letter and threaten a payment service before they paid up $1,800. Its wild how some people treat small businesses like a free loan source.

the_rowan9d ago

Agree with @david_palmer, they definitely use those long payment terms as a way to avoid paying on time.

sam_cooper9d ago

Yeah but net-60 and net-90 are pretty standard in a lot of industries, especially construction and manufacturing. It's not always about them trying to dodge paying, sometimes it's just how their accounting works. I've dealt with places that run their whole payment cycle on a 45 day schedule, so a net-30 invoice just sits there until the next batch goes out. The real issue is when they promise net-30 on the contract and then ghost you after 45 days like you said. That's not a payment term problem, that's them just straight up lying.