The single largest factor in collecting invoices occurs at the client qualification stage, by aggressively down selecting prospects to the subset who are not bozos. This is a thing people often don’t appreciate until collections are actually happening.https://twitter.com/jburrrg/status/1195167942381461504 …
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There are tactical microoptimizarions but e.g. if you’re selling to hospitals or BigCo they routinely take forever to pay and that is just All In The Game, Yo, which is one reason it’s All In The Quote, Yo.
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“Define ‘forever.’” I once got a net 60 invoice paid net 90. Weeks. In the hospital’s version of reality, they were on time.
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Replying to @patio11
Curious: why are up-front terms not a lot more aggressive? Even to pay-in-advance (or at least pay-50%-in-advance). Calibration: I know nothing about this kind of work...
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Replying to @michael_nielsen @patio11
With BigCo’s, most of the time your actual client and the person handling invoices aren’t the same person. They don’t even report to the same person. And if you try to slap onerous payment terms on a BigCo, the lawyers (another dept) will block you from ever becoming a vendor.
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Replying to @josephmosby @patio11
Those aren't onerous payment terms. Given the distribution of risk, they're sensible payment terms. But BigCo likely does a lot to set normative standards, and may label them "onerous".
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Replying to @michael_nielsen @patio11
True, but remember that 50% payment upfront is likely a check *also* written by accounts payable (not your client), so if your client is looking at probably three months wait before they can even get started with work because of corporate processes... they may just pass.
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Replying to @josephmosby @michael_nielsen
Yeah, and you have to be prepared for a junior AP clerk getting back to your client with “I literally cannot do that. No button exists.”, accurately.
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(And that conversation happening 2 months later.)
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“Wait why couldn’t they do that?” For example, because you are routed to a sub department of AP which deals with small vendors which does not possess the ability to make asset-affecting balance sheet transactions. (Pre-paying for services increments an asset.)
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“I mean maybe somebody could do it? But it sure isn’t me. Not sure who it would be. Maybe the group that deals with Amazon. Anyhow your princess is in another castle; ticket closed.”
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