Jon,
Most all of our clients pay within our terms of 30 days. A few pay in 45, but they are always consistent and we never have any issues. We have one client that requires terms of 60 days and we always receive payment within 60 days. You must consider the cost of carrying the receivable and keep in mind that it does not look good on financial statements, especially if it is a large amount.
Steven Giles
14 Tinker Avenue
Londonderry, NH 03053
www.fiberkraft.com
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-----Original Message-----
From: Records Management Program [mailto:[log in to unmask]] On Behalf Of LarryReitz
Sent: Thursday, May 19, 2016 12:05 PM
To: [log in to unmask]
Subject: Re: Net 75?
Almost all of my work is on a contract basis and has been for over 20 years. With few exceptions it's all net 30 (occasionally a net 45). I would be very hesitant to work on a net 75 basis. From my perspective the contractor is essentially serving as a bank for the customer. As a contractor I would also be concerned about cost of money unless I had a significant pool of cash on hand to pay the costs associated with performing the work (staff salaries, travel, etc.) That said, each engagement has to be evaluated on its own merit and in individual cases incurring the costs associated with waiting for payment could make sense to the individual contractor.
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> On May 19, 2016, at 11:24 AM, Steward, David <[log in to unmask]> wrote:
>
> Jon, I checked with our Senior Manager of Accounts Payable. She knows of no trend like you describe. According to her, " We pay Net 30 on firm expenses and Net 60 from the date received in Accounting on billable expenses." Hope this helps!
>
> David B. Steward, CRM IGP
> Director of Records
>
> HUSCH BLACKWELL LLP
> 4801 Main Street,Suite 1000
> Kansas City, MO 64112-2551
> Direct: 816.983.8860
> Fax: 816.983.8080
> [log in to unmask]
> huschblackwell.com
>
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