Cash flow issues from late payments are driving me nuts.
I’ve started asking for 50% upfront and changed my terms to net-15 instead of net-30. I also included a late fee, and it seems effective so far.
What strategies have you implemented to ensure on-time payments?
Three things that really helped me cut down on payment headaches:
First, I switched to requiring payment before delivery. Used to send finished work then wait around for checks. Now everything sits in my drafts folder until the money hits my account.
Second, I started being more direct about money upfront. During the initial call, I tell people exactly when I expect payment and what happens if it’s late. Weeds out the time wasters early.
Third, I keep a simple list of who pays on time and who doesn’t. The slow payers get different terms or I just don’t work with them again. Life’s too short to chase the same people every month.
The phone call thing someone mentioned above is spot on. Amazing how fast people respond when you actually call instead of sending another email they can ignore.
I send invoices the same day I finish work and follow up exactly one week later if there’s no payment.
Also switched to charging weekly instead of waiting until projects are completely done. Smaller amounts come in faster and clients don’t feel hit with one big bill.
Make payment terms super obvious before starting any work. I learned this after getting burned a few times.
Here’s what I do now:
The biggest game changer was actually calling clients about overdue payments instead of just emailing. Most people ignore emails but will pick up the phone and explain what’s going on.
Also started being pickier about clients. If someone haggles over payment terms during the proposal stage, they’re probably going to be a pain later.
Sometimes I mention the late fee thing on the invoice. Works better than nothing.
I just ask for payment when the job’s done.