After freelancing for quite a while, I’ve relied on casual reminders for overdue payments. Now, I’m considering a more formal approach.
How do you structure your collection process for unpaid invoices? Looking at setting timelines, choosing the right words, or even getting external help if needed.
I send one email reminder then move on. Not worth chasing people around forever.
Here’s what works for me after trying tons of different approaches:
Day 7: Quick email reminder with invoice attached
Day 21: Second email asking if there are payment issues
Day 35: Final notice - I’ll pursue other options
After that, I decide based on the client relationship and amount. Good clients who communicate get more flexibility. Radio silence clients get cut off fast.
I learned to track everything in a simple spreadsheet:
This helps me spot patterns. Some clients always pay late but eventually pay. Others are just bad news.
I also started adding payment terms in my project agreements instead of just invoices. Makes it harder for clients to claim they didn’t know.
Honestly, prevention beats collection every time. I now ask about their payment process upfront and avoid clients who seem sketchy about money talk.
I do it differently. Three emails two weeks apart, then one phone call. After that, straight to collections.
Biggest lesson: be specific about dates and amounts every time. Skip the “please remit payment” nonsense. I write the exact invoice number, due date, and amount owed.
I only use collections for invoices over $500. Smaller stuff gets written off. They take 30% but actually collect.
Started requiring 50% upfront on bigger projects too. Cuts collection problems way down.
I just call them after a week or two.
Stop payment calls on day 31, not day 37. Invoice says net 30? You’re calling the next day. Most contractors screw this up by waiting too long. Also, put late fees in your contract - I do 1.5% monthly on overdue balances. Gets them moving and pays for your time chasing money. Don’t bother with collections under $1000. Your time’s worth more than that headache.
I have a straightforward method. First, I send a reminder after 7 days of overdue payment. After 14 days, I use a firmer tone for the second reminder. At 30 days, I mention possible collections.
If there’s still no payment, I either write it off or send it to collections depending on the amount. Usually, most clients pay after the second reminder.