D_Blackwell - 9:58 pm on Nov 20, 2008 (gmt 0)

My thinking is if I say it is due on receipt that they may still take 30 days to pay because as I said I believe they all push the limits, but some will pay within a few days of getting the invoice which is always better. I don't charge late fees or interest until the client hits 45-60 days. I figure by that time, especially 60 days they are beyond pushing the limits and more in the territory of using me as a bank to finance their operations, which I will not tolerate. Remember getting people to pay on time and keeping cash moving through your business is as much an art as it is a rule or system.

How people pay can say a tremendous amount about the character of the person or company, and this is valuable information that can be used to handle them as orders and situations fluctuate. For example, we have a business that operates as I do. We ship the order and PDF an itemized receipt with tracking number and the whole nine yards. He knows us and how we do business. He cuts the check instantly, and we recieve it about the same day as he receives the order. We have another customer that cuts checks on a set and rigid schedule. Only timing slows payment, but we always know when it is coming. Then there are the masses that live on OPM and will float OUR money for as long as they can. We don't tolerate it, and luckily most of our interests are in markets where outrageous payment delays are not an issue; wouldn't want to be. Construction? OMG! Not in it myself, but very close to someone who is involved in large projects. Nobody pays anybody anything for as long as they and their accountants and lawyers can stretch it out.