3 ms·

What happens when you offer a contract that says that net90 is %150 of costs, net30 is %120, net14 is %100, etc and any late payment (typo bullshit or not) has

What happens when you offer a contract that says that net90 is %150 of costs, net30 is %120, net14 is %100, etc and any late payment (typo bullshit or not) has a %20 compound APR billed per month, like a credit card? Basically a contract that would be fine if the corp doesn't play shenanigans, and wouldn't if they do.

ams6110 8y ago
A contract is only as good as your willingness and financial capacity (paying lawyers) to enforce it.
boyband6666 8y ago
The problem is you are a small provider, and they are a megacorp. There are alternatives for them (all the other small companies), and the corporate terms are say 90 days. No small provider has the leverage to say no. The terms also just aren't up for negotiation, these are our payment terms. The best I manage is having projects wherey ou bill half up front, and half on completion (or similar), though some companies also don't allow that. The onyl time that changes is when terms ae totally ridiculous like GE and the 120 days. At that point it just isn't worth it. One client has annoyed me so much with late payment etc. forms, and just being a pain, that I've refused to deal with them again. It isn't worth the time.
thisisweirdok 8y ago
They say no and will reject your contract. Now you have to find another project. When you're freelancing there are times when it's very hard to say no because you don't necessarily know when the next job is coming.
dmurray 8y ago
The way I've heard works better is to pad the price in the first place, and give "30% discount for prompt payment (net14)". The people making the purchasing decision will use the discounted price, or perhaps they won't be price sensitive at all. The AP people will spot that they can save the firm 30% by paying your invoices early.

3 ms·

What happens when you offer a contract that says that net90 is %150 of costs, net30 is %120, net14 is %100, etc and any late payment (typo bullshit or not) has

by woolvalley 8y ago

ams6110 8y ago
A contract is only as good as your willingness and financial capacity (paying lawyers) to enforce it.
boyband6666 8y ago
The problem is you are a small provider, and they are a megacorp. There are alternatives for them (all the other small companies), and the corporate terms are say 90 days. No small provider has the leverage to say no. The terms also just aren't up for negotiation, these are our payment terms. The best I manage is having projects wherey ou bill half up front, and half on completion (or similar), though some companies also don't allow that. The onyl time that changes is when terms ae totally ridiculous like GE and the 120 days. At that point it just isn't worth it. One client has annoyed me so much with late payment etc. forms, and just being a pain, that I've refused to deal with them again. It isn't worth the time.
thisisweirdok 8y ago
They say no and will reject your contract. Now you have to find another project. When you're freelancing there are times when it's very hard to say no because you don't necessarily know when the next job is coming.
dmurray 8y ago
The way I've heard works better is to pad the price in the first place, and give "30% discount for prompt payment (net14)". The people making the purchasing decision will use the discounted price, or perhaps they won't be price sensitive at all. The AP people will spot that they can save the firm 30% by paying your invoices early.