Should AI Firms Offer Net 30 Terms to High-Growth Startups?Should AI Firms Offer Net 30 Terms to High-Growth Startups?
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Question for the community: Offering Net 30 terms for early-stage startups? πŸš€πŸ›οΈ
At AliceLabs LLC, we are debating a new initiative to support high-growth startups by offering Net 30 payment terms on our AI Infrastructure & Automation setups.
We know cash flow is king for new companies, and we want to align our engineering delivery with their growth cycles.
What do you think? β€’ Is Net 30 too risky for specialized AI services? β€’ Does it add significant value for the client vs. upfront payments? β€’ Have any of you implemented corporate credit terms in your agency model?
Looking for some insights from fellow architects and engineers!
David's avatar
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I'm not an agency owner so not sure how valuable my advice is here, but net 30 seems to be something you'd only want to offer clients who you are sure are going to pay. I might only offer it to clients who have already had a good history with you, or with large corporates who...
Edison's avatar
Spot on. I completely agree with your point. At AliceLabs LLC, our current strategy is to mitigate risk by requiring a Setup Fee / Implementation Fee upfront upon signing the contract.
This covers the initial heavy lifting and infrastructure build. The Net 30 terms will be...
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