Hi everybody,Case study: A UK independent consultant sets up as a Limited company. A larger UK consultancy hires him in to support them on a project. This will be for 10 to 15 days work (at a low rate) spread over a 6-8 week period; time sheets and interim reports are provided throughout, so effort is visible to all. It is their first business relationship. The larger consultancy offers payment terms of 45 days. Is 45 days reasonable? I had thought 30 days to be normal, but then I remembered many independents requesting payment upon receipt of invoice.Perhaps being a Limited company stretches the payment terms here (although the larger firm knows it is one guy).What do you think is fair and what should the independent push for without being unreasonable? Thank you for any advice here - sometimes it's the seemingly simple questions that have one stumped.

Coming from absolutely no relevant experience whatsoever but...Is the extra 15 days going to stretch you in some way? I'd be reluctant to lose a potentially valuable relationship over what sounds like a minor point.

Yeah I see your point - good point. I guess the difference between immediate and 45 days is more pronounced. One would work 5 or 10 days over a few weeks before invoicing for a few thousand pounds, and then wait 45 days more for payment, while continuing to work in the meanwhile.It might be the usual way of things which would be fine, but I wouldn't want to follow this path if I was missing a trick :)

Industry standard is 30 days. i.e. you work 30 days and then invoice at end of month, and will receive payment 30 days later (which means average of 45 days accounts receivable).I work regularly with Eden Mccallum, Holker Watkin etc, as well as a number of small boutique firms and these are the terms from all of them.If the larger consulting firm is asking for 45 days - this is not standard. I'd push back.

I get them to pay a retainer up-front these days. Can't be dealing with tardy payers or nit-pickers any more. If they're serious, they'll do that.