The 30-day payment clause I used to swear by, now I get why clients push back

I used to insist on net-30 for everything, thought it was the gold standard. Then a client in Austin showed me their cash flow cycle, payments genuinely land better on net-15 for small shops. Has anyone else switched their terms after seeing it from the buyer side?

2 comments

2 Comments

rowanw914d ago

Yeah that makes total sense honestly. It's wild how much you learn when you actually see the other side of the table. Good on you for listening instead of just sticking to the old way.

laura_wilson4d ago

Wait, net-15 actually works better for them? I always figured the whole point of net-30 was giving the buyer a fair window, but if their whole cash flow cycle is built around two-week chunks, then yeah, net-15 probably feels way less like a gamble on their end. Still blows my mind that a small shop would even have that tight of a cycle, like one delayed invoice from someone else could just wreck their whole month. Did you adjust your late fees too, or just roll with the new dates?