Are Net 30 Terms the Only Possibility?

Question

A friend who owns a European advertising firm is interested in offering his service to American companies that want to bring their brands to Europe. The only trouble, yet perhaps it's not trouble, is that in his country he's used to doing all his business via upfront payments, before the work is finished and delivered to the client. It's a known fact that much of American and perhaps British business is done on Net 30 terms. Will "payment first" terms be a show-stopper, so to speak, or would businesses consider doing business like this?

Please tell me what you think, with serious answers only, and if you have experience in this regard, all the better. Copy and paste answers are less than desirable here, unless they are VERY to the point and not just close. Thank you.

Answer 1

Your friend can try asking for money up front, but most American companies my not want to do so with a company they have not done business before, but being from Europe does make it more possible.  If the customer refuses, they could ask for 1/2 up front and 1/2 upon delivery/completion of service.

Another reason up front payments may be acceptable is that with exchange rates to consider, it may be in the company's interest to pay at the current rate.

That will really depend on the individual company.  Best of luck.

Answer 2

You can use whichever "terms" you want....

Due upon Receipt

COD

Net 10

Net 30

But to directly answer your question, why would anyone pay "up-front" for a business or service before the work is finished or delivered?

Progress payments seem to be the best for all parties involved...