I’m in a tricky situation with a client who’s well past the payment deadline—45 days overdue. Typically, I rely on friendly reminders, but this time it feels like I need to take a more formal approach.
How can I address this issue without damaging our working relationship? It’s crucial to ensure I’m covered legally while maintaining a professional atmosphere, especially in a tight-knit industry.
I just remind them and keep it simple.
Send a demand letter first. Call it exactly that - a demand for payment.
Here’s what I put in mine:
Send it certified mail for proof of delivery. Email works but save those delivery receipts.
Stay matter-of-fact. No emotion, just facts and what’ll happen next. Most clients get serious when they see “demand letter” in writing.
If they still don’t pay, you know where things stand. At least you gave them one clear chance before it gets messy.
A clear message helps. Lay out a firm deadline for payment to avoid confusion. Being direct can actually help keep things professional.
I send a “final notice” email with the subject “Final Notice - Invoice #[number] - Payment Required Within 7 Days”. Keep it professional but firm.
I include the original invoice date, amount owed, and mention it’s 45 days overdue. They get exactly 7 days to pay or I’m moving to collections.
Always CC my business email for the paper trail. Sometimes I’ll add that delays affect future project availability.
Most clients pay within those 7 days - they finally get you’re serious. The ones who don’t weren’t gonna pay anyway.
After that, I either write it off or send it to collections depending on the amount.
Invoice them with late fees if your contract covers it. Tell them work stops until you get paid.
Most clients pay up fast when they see you’re not messing around. Keep it professional. Don’t make it personal.
Stop all work immediately. That’s your biggest leverage. Call them first and skip the letters and emails for now. Phone calls get faster results than paperwork. Tell them you need payment in 48 hours or the project stops. Most clients scramble to pay once they realize their deadline is about to blow. If the call doesn’t work, then send written notices. But don’t waste weeks on formal letters when a quick conversation usually fixes it.