Posted by John Schenk on 3/4/11 6:44pm
Msg #375159

Having to send "reminders" for Invoices

on a couple I've never had to remind before that are good clients and have always paid well. Not ready to red flag them yet, but hoping this isn't a trend.

Hope everyone has a great weekend!

JJ

Reply by Moneyman/TX on 3/4/11 7:12pm
Msg #375162

Seems like that is becoming more the "norm" now.

Have a great weekend!

Reply by BobbiCT on 3/4/11 7:39pm
Msg #375165

Big Business "net 60+ to pay" the new norm

Heard this from a statistical analyst / economist about a week ago, discussed in depth for about 30 minutes. How Big business is working in today's economy. In short: Old norm was Big Business net 30 in payments to small business, new norm is Big Business net 60 in payments to small business - NOT because it doesn't have the money to pay, because it doesn't want to pay out in net 30.

Now that Big Business has slimmer profit margins and wants to keep cash in hand longer to in hopes of generating revenue or available for other uses, the new norm is Big Business net 60 in payments to small business subcontractors and vendors but REQUIRES payments owed to itself in net 30 (gives a 30 day spread between receipts and payments). Speaker pointed out how this is hurting small business and how small business is carrying Big Business on its breaking back. Sad state of affairs for us little people: He pointed out Big Business can do this because it is Big Business - only game in town.

Reply by James Dawson on 3/4/11 8:49pm
Msg #375173

Same to you John...Atty I have been working for contacted me today to do some work next week. In the email they mentioned they sent me a check "yesterday" for work I did in Jan. They followed with a 2nd email saying they had just received my "updated" invoice for Feb and would included THAT payment with the payment for the work I WILL DO NEXT WEEK. What the hell kinda payment system is that! LOL

Reply by John Schenk on 3/4/11 9:03pm
Msg #375175

LOL I hear ya bro! n/m

Reply by MW/VA on 3/4/11 10:08pm
Msg #375181

I'm seeing the trend also. It seems to follow--business is slow & so are payments.

Reply by Linda_H/FL on 3/4/11 10:11pm
Msg #375183

Yeah..I have a title company that's pushing 55

days out on an invoice...sent one reminder last Wednesday - they asked for a W-9, which was sent immediately - if nothing by Monday I'll be contacting them again - their mortgage recorded mid-January.