Payment Terms
Catalant's standard payment terms are Net-60 days for all projects. Transfers for both “Your Fees” and “Project Expenses” are distributed via Payoneer 60 days following on-platform client approval.
Catalant’s Commitment to Expert Payments and Financial Sustainability
Catalant has always paid Experts well before receiving payment from Clients. This creates a significant cost for Catalant, which grows as the business expands. Our clients are large organizations, including some of the largest enterprises in the world, with payment terms often extending up to 120 days. As a result, Catalant is consistently lending a significant sum to Experts, and this amount continues to grow as the company scales. We remain committed to guaranteeing payment to Experts, even in rare cases where clients do not pay us, and we handle all collections work.
We understand that this policy may impact how your practice plans for receivables, and we are committed to ensuring your complete understanding of how Catalant’s payment terms work. To help clarify payment timing and our evolving operations, we have answered several key questions below.
FAQ’s
Does this apply to projects I’m currently engaged in?
Yes- the Net 60 payment terms generally apply to all current projects.
Does it include all project extensions?
Yes- all project extensions will have the same payment terms as the initial proposal.
When does Catalant receive payment from clients?
Catalant receives client payments well after transferring funds to Experts. We do NOT hold funds in escrow and, on average, pay Experts before receiving payment from clients. Aligning the timing of these transactions helps ensure the long-term scalability of the business.
Is there any way to be paid sooner?
We recognize that this policy may require adjustments in how you operate your practice or structure payments for projects. We encourage you to consider options like up-front invoicing or project "kick-off” payments as part of your project negotiations with clients.
For example, invoicing a significant amount upfront at Net 60 payment terms gives the same, if not better, cashflow versus invoicing the typical way many independents work by invoicing at 30 day terms after one month. To better understand, please see the illustration below:
Common approach to invoicing:
Many Experts set their first invoice to be connected to a milestone achieved in the future or after the first set of days have been worked. This leads to a large delay in the initial payment before falling into a cycle of payments every 30 days.
Recommended approach to invoicing:
The best practice is to set the first milestone as project kickoff or to gill for the first 30 days of work ahead of it happening. Consulting firms almost always consider project kickoff as the first milestone and invoice for 25-50% of the project at kickoff.
As always, we are ready to assist you in facilitating those conversations.
Can project payment terms exceptions be made upon request?
No. Given our volume of work, we cannot accommodate changes to payment terms for a few reasons:
- Changes at any time have a direct effect on financial reporting.
- Shortening the payment window has a direct effect on the amount Catalant is lending at any point to Experts, and that large sum would continue to grow significantly as the company grows.
- Our system inherently does not support one-off early payments or manual interventions of any kind across such a large network as it is based on consistent, automated processes.
How should I think about the value that Catalant provides?
Catalant is designed to help independent consultants and boutique firms by:
- Using our intuitive technology platform to assist in growing your consulting business
- Allowing the ability to connect and collaborate with other top independent consultants
- Enabling the engagement with leading organizations, including Fortune 500 companies and private equity firms that may not have been available or open to you otherwise
- Owning back-office and collections activities when working with clients
- Paying consultants regardless of a client’s ability to pay
- Receiving more consistent and often faster payment terms than if contracting with clients directly.
- Allocating Project Fees paid to Catalant to the client.
- Finding Services to aid in streamlining your experience as an independent consultant or boutique firm
Owning these activities allows Experts to focus more on work execution than administrative tasks. Beyond the above, our team is continually working to enhance the value we provide to Experts and we welcome your feedback on ways we could elevate the overall Expert experience.
If you encounter any issues or have questions regarding the payment process, please contact Catalant Support at support@gocatalant.com for further assistance.