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Comment by riskable | Hacker News Reader

You need to CALL OUT these businesses loudly and publicly. This whole, "I'm not paying you for 90-120 days and then I notify you of a typo precisely 91 days later when you ask where the money is" needs to end.

So in that vein: Fuck GE Healthcare. They have NET120 and they will do all the things you and I have described and more in order to put off payment to small businesses for as long as possible.

I didn't get a check from them until their stuff broke (had nothing to do with my software but they thought it did) and I refused to help them until I got paid.

Whaddayaknow, I had a check overnighted to me with early morning delivery!

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What happens when you offer a contract that says that net90 is %150 of costs, net30 is %120, net14 is %100, etc and any late payment (typo bullshit or not) has a %20 compound APR billed per month, like a credit card?

Basically a contract that would be fine if the corp doesn't play shenanigans, and wouldn't if they do.

The way I've heard works better is to pad the price in the first place, and give "30% discount for prompt payment (net14)". The people making the purchasing decision will use the discounted price, or perhaps they won't be price sensitive at all. The AP people will spot that they can save the firm 30% by paying your invoices early.

The problem is you are a small provider, and they are a megacorp. There are alternatives for them (all the other small companies), and the corporate terms are say 90 days. No small provider has the leverage to say no. The terms also just aren't up for negotiation, these are our payment terms.

The best I manage is having projects wherey ou bill half up front, and half on completion (or similar), though some companies also don't allow that.

The onyl time that changes is when terms ae totally ridiculous like GE and the 120 days. At that point it just isn't worth it. One client has annoyed me so much with late payment etc. forms, and just being a pain, that I've refused to deal with them again. It isn't worth the time.

They say no and will reject your contract. Now you have to find another project. When you're freelancing there are times when it's very hard to say no because you don't necessarily know when the next job is coming.

A contract is only as good as your willingness and financial capacity (paying lawyers) to enforce it.

Hope you told them (after cashing the check for your past services of course) that you won't help them due to their previous payment behavior, or that you require cleared pre-payment at a significantly higher rate.

LOL

As I was reading the complaint about net 90 I was thinking about GE and the unheard of 120 day terms. I'm glad it isn't just me.

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