The convo that made me realize my payment terms are a joke

Had a chat with my neighbor Gary last week over the fence, he runs an HVAC company. I was complaining about a client who's 45 days late on a $600 grooming job for their poodle. Gary laughed and said his standard net 15 for commercial clients, he charges 2% interest after that. I've been doing net 30 and basically begging. It hit different because I realized I'm treating my small biz like a hobby, not a real company. Has anyone else switched to shorter terms and seen faster payments?

3 comments

3 Comments

kimdixon1d ago

Read something similar in a small biz forum last week.

knight.uma1d ago

Oh, I think Gary's net 15 with, like, only the smaller clients he's trying to impress.

margaretc421d ago

Do you really think Gary is net 15 with all his clients or is he just telling you what sounds good? I've seen a lot of people talk tough about terms until a big customer threatens to leave. Honestly, the poodle owner paying 45 days late isn't great, but maybe she's just forgetful, not trying to screw you. Shorter terms can backfire if your clients aren't used to them, and then you're just chasing smaller amounts sooner. It might fix some cash flow, but it's not a magic bullet for people who don't respect your time.