What are good law firm collection practices? What payment terms are industry standard with clients? Typical for clients to have outstanding bills beyond 90 days?

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Our invoices are due upon receipt and most of my clients (>85%) pay within 30 days. Another 10% pay within 60 days. Very few clients (5% or less) have invoices outstanding beyond 60 days.

Absent some unique circumstance (like an M&A deal that pays out as part of the funds flow) I won’t do more work for clients who have AR aged beyond 90 days until they come current.

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F

Have a matter that we’re months in on with next to nothing paid. Surprised the firm is still allowing us to work on it, but the relationship partner has some clout.

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