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Yes this has been really tough for me to learn. My cash outflows can vary by up to $30k per month. I’m self employed and often have to travel and various client
by ryanmarsh 9y ago
Yes this has been really tough for me to learn. My cash outflows can vary by up to $30k per month. I’m self employed and often have to travel and various clients pay me net 30,45, or 60. I thought maybe 60 days of cash would cover net 60 but it turns out I need more like 180 days of cash.
- kayhi 9y agoMaybe instead of negotiating rate, you get all your clients to pay on net 30
- sokoloff 9y agoGet clients to agree to pay net-30 is easy. Getting them to actually pay net-30 is much harder.
- Maultasche 9y agoOne tactic I've heard is to increase the price by 5% and then give them a 5% discount if they pay within 30 days. I've never tried this myself, but I've heard that this greatly encourages prompt payment because everyone loves a discount.
- abalashov 9y agoI offer significantly higher discounts than that for quarterly or annual prepayment, in the case of recurring revenue. Cash is king. Even to the degree where taking a 12-25% haircut can be worth it.
- ryanmarsh 9y agoLOL my clients are Fortune 100. Im lucky if I get to negotiate anything. I usually get the same payment terms as all of their suppliers.