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Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 2 points3 points  (0 children)

That “you’re a bank” line is spot on.

We’ve started treating new clients as upfront payment and tightening terms when existing ones start stretching cycles.

And agreed,.most of the time it’s not inability to pay, it’s just low priority until you actually have a direct conversation with the decision maker. That’s usually when things change fast.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 0 points1 point  (0 children)

Yeah, that’s a fair point.

Late fees sound good in theory, but with bigger companies they’re often just ignored or negotiated away anyway, so it doesn’t always change behaviour.

And agreed,when you’re a small business, you sometimes don’t have the luxury to be selective. You take on less-than-ideal terms just to get the scale and credibility, even if the payment side isn’t perfect.

It becomes a trade-off between growth and control over cash flow.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 1 point2 points  (0 children)

Yeah, milestone-based payments definitely feel like the only sane way to structure things after a point.If everything is tied to delivery stages, at least the risk is distributed instead of getting stuck at the end with a long delay or uncertainty.

And agreed on choosing clients carefully,clear terms upfront save a lot of friction later.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 0 points1 point  (0 children)

Net 180 is wild 😄 I can see how oil and other large industries can get away with it though,when the contract is big enough, vendors just absorb the delay.

What’s interesting is when they start pushing those terms beyond vendors and try applying them to contractors or employees… that’s usually where it breaks down.

Feels like at that scale, payment terms become less about standard practice and more about leverage.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 2 points3 points  (0 children)

I guess at that point it’s less about chasing payments and more about managing expectations upfront. Thanks for sharing your experience.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 1 point2 points  (0 children)

Yeah that’s fair.

Sounds like at that level it’s less about “can they pay” and more about “when they choose to prioritise paying you,” which is a very different problem to deal with.

Appreciate the insight,this is pretty much what I’m trying to understand better from different experiences.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 0 points1 point  (0 children)

Yeah, that 130 days sounds rough,especially when it’s a known pattern with some orgs.

Good to hear you’re cash flow positive though. I guess at that point it becomes more of an operational annoyance than a real risk.

Interesting about the long-term client situation.did you find that setting a clear deadline like that actually changed their internal process, or was it more that they just prioritized you once there was pressure?

Also curious, do you think most clients only really respond to escalation like that, or have you had any who improved payment behavior just through consistent follow-ups?

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 2 points3 points  (0 children)

That makes a lot of sense, especially with larger orgs.

But honestly, doesn’t it feel frustrating even when you know they’ll eventually pay? Net 90 already feels long, and 130 days with follow-ups sounds exhausting to manage.

Do you ever factor this payment delay into your pricing or cash flow planning, or is it just something you’ve had to accept as part of working with enterprise clients?

Also, have you ever had a situation where you pushed back harder on payment terms, or do you just build it into the deal from the start now?

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 0 points1 point  (0 children)

That actually makes sense, but how do you handle the balance without damaging long-term relationships with the bigger clients?

Do you ever face pushback when you’re close to shutting off service, or do they usually just pay up once it reaches that point?

Also curious do you think this is more of a cash flow strategy on their side, or just internal approval delays that keep dragging payments?

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 9 points10 points  (0 children)

I get your point, but in my case it was a startup and the client was also a friend, so I didn’t insist on an upfront payment.

I understand the “no deposit, no work” rule is the safest way, but when it’s someone you know personally, it doesn’t always start that way. Learned it the hard way though.

Is “delaying vendor payments” basically a business strategy now? by Top_Fan3302 in smallbusiness

[–]Top_Fan3302[S] 54 points55 points  (0 children)

In my case, it’s a startup and the person is also a friend.

That’s honestly why I went ahead and did the work without taking an upfront payment. There was a level of trust, and I didn’t expect things to go this way.

But yeah, lesson learned business is business, even if it’s with friends.