Been thinking about this lately after dealing with the same slow-paying clients over and over. Started adjusting my payment terms based on how clients have paid in the past.
If someone consistently pays late, I now require payment upfront or shorter payment windows. It’s actually working pretty well so far.
I keep things clear. If a client is late twice, I switch to new terms. I explain the change directly and most clients accept it. Staying upfront helps set the right expectations.
Good on you for figuring this out. I wish I’d started doing this years ago instead of chasing the same people every month.
I track everything in a simple spreadsheet - payment dates next to due dates so I can spot patterns fast. Some clients are always 10 days late, others pay on time.
Repeat offenders get different contracts now. I don’t call it punishment or anything dramatic. Just tell them my terms changed and here’s the new agreement.
One trick that works well - I give good payers small discounts for early payment. 2% off if paid within 10 days. Creates two tiers without making anyone feel bad.
Adjusting payment terms based on past behavior is smart. If clients are late, I require upfront payment or shorten the window. After two late payments, I ask for half upfront. Most clients get it. Those who complain are not worth my time.