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I do a lot of aftermarket work for the local dealerships and body shops. Most are 15 day net terms but others are getting stretched out pretty far. 10th of the following month, lost invoices, amount billed is less than estimate, no one is here to sign the checks. That PO was closed and you need a new number. The crazy excuses just keep on coming.

 

So my question is how do I break this cycle and encourage prompt payment? I do not want to discount a lower than normal Profit margin. And setting late fees may turn business away. Unfortunately it is a big part of my business.

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