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What do you think of putting less than +30? I've only ever done any large work with long standing clients that pay quickly. Would the majority of clients not ag
by robryan 15y ago
What do you think of putting less than +30? I've only ever done any large work with long standing clients that pay quickly. Would the majority of clients not agree to it? Could be a way to ensure that it ends up being +30 even with the client dragging their feet.
- tptacek 15y agoYou can ask for whatever you want. You'll only run into problems with BigCo's if you do one of two bad things: * Refuse to sign unless the BigCo agrees to your payment terms. * Actually expect the BigCo to perceive time elapsing in a way that will get you paid in 30 +/- small n days. They won't get offended when you ask for net+15. They might even agree. But you're getting paid when the stars align, not when you think the contract says you're getting paid. Established consultancies devote a small but palpable bit of effort managing this issue.
- Unregistered 15y agoIts hard to change "policy" at larger companies, however offering a discount for early payment can help.
- furyg3 15y agoI did business with a department which was in the process of spinning off from a big Fortune 100 company. They had plenty of funds, but there was a lot of bureaucracy during the transition. As such, they told me they 'required' net-60 I asked for clarification, and they were apologetic about it. They could only run payments on a 60 day schedule. Solution: I billed net-30, 15% monthly surcharge for late payments, which they happily paid. The lesson was that sometimes a client has no choice but to drag their feet, so be sure to give them that option (for a fee).
- tptacek 15y agoChances are, anybody new to consulting with BigCo's can build that "surcharge" in without any negotiation at all: just jack your rates. You are almost certainly wildly undercharging as it stands.