Landing a contract is great, but the net 60 payment terms are throwing me off. Waiting two months for payment feels impossible when I’ve got bills piling up.
Have any of you managed to push back against these big companies and negotiate for a quicker payment schedule, like net 30 or net 15?
Yeah, I’ve pushed back on net 60 before. It’s not always hopeless.
Here’s what’s worked:
Sometimes the person you’re talking to doesn’t even know they can approve different terms. Had one client where the project manager said net 60 was set in stone, but finance approved net 30 the same day I asked.
Worst case, invoice in smaller chunks more often. Instead of one big invoice every two months, bill monthly or weekly if the work allows it.
The cash flow hit is brutal though. I’ve turned down good projects because I literally couldn’t afford to wait that long.
Got stuck with net 60 once. Learned to work around it instead of fighting it.
Progress payments saved me. Instead of one invoice at the end, I bill 25% after kickoff, 50% at halfway, final 25% on delivery. Each piece still takes 60 days, but money flows way earlier.
Ask about their vendor portal during contract talks. Some companies process payments faster through automated systems than manual invoices. One client cut my wait to 45 days just by getting set up right.
Real game changer was building a cash buffer from smaller clients with better terms. Took 8 months but now I can handle long waits without sweating rent.
Net 60? Hard pass. I’m upfront about net 30 max - if they can’t do it, we’re not a match. Most companies will bend if they actually want you. The stubborn ones usually aren’t worth the hassle anyway. You’ve got more leverage than you realize.
If they won’t budge on payment terms, I demand 50% upfront. Covers my costs and keeps cash flowing while I wait for the balance.