Went from net 30 to 5% discount for early pay, client actually bit

I used to just send invoices with net 30 and chase people for weeks. One client in Austin owed me $1,800 for 47 days straight. I read a post about offering a 5% discount if they pay within 7 days, so I tried it on my next three invoices. Two paid within 4 days, and the third took 9 days but still beat my usual 30. That discount costs me about $40 per invoice, but I stopped wasting time on reminders and chasing calls. Has anyone else tested early payment discounts with smaller clients, or does it just train them to always wait for the discount?

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1 Comment

carr.luna1d ago

$40 off seems steep just to skip a few reminder emails.