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Changed invoice terms and my late payments dropped 40% in one quarter
Had a client that paid 60 days late like clockwork, every single invoice. I tried the usual reminders and phone calls, nothing worked. Finally I switched my terms from "Net 30" to "10 days with a 2% discount" back in March. Same clients, same work, but suddenly almost everyone started paying in the first week. The one guy who ignored it got a $35 late fee tacked on, and that got his attention fast. Wasn't expecting such a quick shift, honestly. Has anyone else tried early payment discounts and seen a similar jump?
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kelly.max2d ago
Did you ever stop and think the discount is just eating your margin while the real fix was the late fee? You cut your own pay by 2% on every single invoice just to speed up cash flow, and that adds up fast on steady work. If a $35 fee was enough to wake that one guy up, why not just slap the fee on everyone from day one and keep your full rate? Feels like you solved a discipline problem by paying clients to behave.
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