Follow

When billing a customer, which is preferable? A 50:50 split on an invoice (50% now, 50% on completion) or Net 30 terms (i.e. pay everything after 30 days)? Asking for a friend.

· · Web · 3 · 1 · 4

@JohnsNotHere If you doubt the reputability of your partner, 50:50.

If you KNOW they can pay for it, 30 days, after which you set a fine of 10% per every day over that.

@m4iler

That's what I was thinking, Now I just need to adjust my invoices accordingly. ;-)

As for being late, I've already got my "late fee" baked into the contract, so that's fine.

@JohnsNotHere

The answer depends on the several factors, like what the product or service is, what is typically offered by your competitors, your company's cash flow/revenue needs, and the type of clientèle you service/sell to.

Residential: Net 0 - 10 days
Small Biz: Net 10-30 days
Big Biz: Net 30-90 days

I often demanded a % down against hardware sold in the invoice.

Clients judge you by what your competitors are offering, but what you require to stay in business is paramount.

@JohnsNotHere: I'd agree with @m4iler 30 days with a late fee. It's a fair compromise that most people will find agreeable. Don't shy away from gentle, then firm, reminders for payment though. I had clients that were consistently late. I worked closely with them and knew it was just poor process on their behalf. After a while a quite chat then a notice of intent to charge late fees soon sorted things out.

@ddench @JohnsNotHere Yes. Literally the only thing worse than paying some sucka money is "paying more money because I'm late".

Sign in to participate in the conversation
Infosec Exchange

A Mastodon instance for info/cyber security-minded people.