Dealing with late payments from several clients at once

Debt Collection & Unpaid Invoices
1

This month has been rough with three clients missing their payment deadlines. Normally, I can manage one late payment, but all at once is draining my cash flow.

Thinking about adjusting my payment terms or stepping up my follow-up game.

2

Don’t sit and wait for late payments. I stick to net 15 and remind on day 16. By day 20, I call them. On day 25, I send a final notice with late fees. After 30 days, I stop all work and consider collections. Train your clients to respect your payment terms. For new projects, ask for 50% upfront. It lessens the blow from late payments.

3

Had this happen twice in my business and it nearly killed me both times. After the second round, I changed everything.

Now I require payment within 10 days instead of 30. Sounds scary but most clients who complain about short terms are the ones who pay late anyway.

I also started using a factoring company for my bigger invoices. They buy the invoice from me at a discount and chase the payment themselves. Costs me about 3% but I get paid in 24 hours instead of waiting months.

For the three clients you have now, call them today. Don’t email. A phone call gets results way faster than another invoice reminder sitting in their inbox.

4

Been there with the cash flow squeeze. It sucks when multiple clients decide to be late at the same time.

Here’s what saved me from this situation:

  • Split your invoices - Instead of one big invoice at project end, send smaller ones throughout the work
  • Net 15 maximum - Anything longer just gives them permission to be slow
  • Track patterns - Some clients are always late, others just hit rough patches

For your current situation, don’t just follow up once. Send a quick email today, then another in 3 days if no response. Most people pay faster when they know you’re actively tracking it.

Also consider which clients are worth keeping. If someone is consistently late, they’re costing you more than just the delayed payment. The stress and time chasing them down adds up.

5

Late fees help. I charge 1.5% per month after 30 days and most people pay faster.

6

Three late payments at once is tough on cash flow. Start asking for deposits upfront, like 30% or 50% before any work.

Also review your clients. If many are late, it may be time to find clients who respect deadlines.

7

I just ask for half upfront now after getting burned.