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Vent: my average days to get paid went from 47 to 12 in six months and I almost missed why
Back in January I finally sat down and did the math on my own books, and it was ugly. My average invoice sat unpaid for 47 days, and I had $8,400 tied up in jobs I finished before Thanksgiving. Then in February I changed one thing. I put a due date and a 2% late fee right on the invoice face and started sending a payment link with the email instead of a PDF. By July my average was down to 12 days. Same jobs, same customers, mostly the same dollar amounts. Nothing else about how I ran the business changed. I think people pay faster when the clock is visible instead of buried in the fine print. Has anyone tried adding a small discount for paying early instead of a fee for paying late? Curious if that backfires.
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