Warning: never sign a contract with a net-90 payment clause unless you have savings

Has anyone else dealt with net-60 or net-90 terms totally wrecking your cash flow?

3 comments

3 Comments

Net 90 is basically a death sentence for small operators who don't have a big pile of cash sitting around. Even net 60 can be brutal if your own suppliers want payment in 30 days or less. You end up financing their business for them which is just not right when margins are already thin.

abby_fisher2d agoTop Commenter

Net 90 is just a fancy way of saying "hope you like eating ramen for three months.

river_thompson2d ago

Net 90 is just their way of making YOU the bank.