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Showerthought: Our runway died the day our biggest customer asked for net 90
Two weeks before Christmas in 2022, our one whale client, a logistics firm in Cincinnati, told us they were switching to net 90 terms. We had 40k in the bank and payroll was 22k every two weeks, so I said yes because losing them meant losing 70 percent of revenue. Six weeks later we were late on our own vendor bills and I had to tell the team I couldn't make payroll that Friday. Has anyone here ever renegotiated payment terms back to something sane, or did you just start chasing smaller clients to spread out the risk?
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