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Switched from net 60 to net 15 after one nightmare in Austin
Used to let everyone pick net 60 terms because I was scared of losing work. Then a restaurant in Austin sat on a $4,800 invoice for 87 days and only paid after I threatened to file a lien. I switched every new contract to net 15 with a 2% late fee tacked on day 16. Lost two big fish right away, but the cash flow bump is worth it. Anyone else find that stricter terms scare off the slow payers only?
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parker_hall51mo ago
2% late fee probably filters out the broke clients faster than the terms do.
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