A client asking for net-60 payment terms is asking you to float their cash-flow gap for two months, which is a real cost even when it's framed as a standard business request. A blanket refusal can cost a genuinely good, larger client, and a blanket yes can quietly strain your own cash flow in ways that are hard to see coming.
The right answer isn't a fixed policy either way. It's understanding the real tradeoff before agreeing to it.
Extended terms move real cash-flow risk onto you, not just a formality
Net-60 isn't a paperwork preference, it's you extending real credit to the client for two months, with all the cash-flow exposure that implies. Recognize the real financial mechanics before treating it as a routine ask.
Understand why they actually need extended terms before deciding
Some clients, especially larger ones, have genuinely standard internal payment cycles that net-60 simply reflects; others are asking because their own cash flow is under real strain. Understanding which one you're dealing with shapes how much risk you're actually taking on.
In Stelaah, a client's payment history and terms stay on the record, so a decision about extended terms is grounded in their actual track record, not a one-off guess. See how invoices works.
Price for the real cost of waiting, not the same rate as faster terms
Extending payment terms without adjusting price means effectively giving a discount, since money later is worth less than money now. Reflect the real cost of the extended window in the price, or explicitly decide the relationship is worth absorbing it.
Protect yourself with a real payment schedule, not one lump sum at net-60
A single lump payment due at day sixty concentrates all your risk into one date. Structure it with partial payments along the way where possible, so a delay or dispute at the end doesn't leave you exposed for the entire amount.
Know when it's simply not worth it for this size or type of client
For a smaller engagement or a newer relationship, the cash-flow risk of net-60 may simply outweigh the value of the deal. Know your own threshold in advance, rather than deciding case by case under the pressure of losing a specific deal.
A simple checklist
If you do nothing else, do these five things:
- Understand why the client actually needs extended terms.
- Price for the real cost of waiting, not the same as faster terms.
- Structure partial payments along the way rather than one lump sum.
- Know your own threshold for when extended terms aren't worth the risk.
- Check payment history before extending trust on a new relationship.
Do that, and net-60 becomes a deliberate, priced decision, not a routine request you agreed to without weighing the real cost.
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