Been thinking about this lately after dealing with some slow-paying clients. Most of us probably send reminders based on what feels right or what we’ve always done.
But what if we actually aligned our reminder schedules with what’s considered normal in each industry? Like, construction companies might expect different payment cycles than marketing agencies.
Wondering if this approach would actually make collection easier or just complicate things more.
Keep it simple. Late is late. I don’t care what industry they’re in.
Aligning reminders with industry norms sounds good but complicates things. Every client acts like they are unique. I send the same reminders to all clients now. It is much easier and more effective.
I just send reminders when bills are late period
Put payment terms in the contract upfront - not in reminder schedules. I always tell clients net 30 when we sign. If their industry needs different terms, we hash that out before I start work. Once the job’s done, late fees kick in at 30 days no matter who they are. Reminders go out automatically. No special treatment based on their business.
I do something in between. I don’t customize reminders for each industry, but I adjust based on what I know about the client.
If someone tells me upfront they’ve got a weird approval process or only pay on certain dates, I’ll note that and adjust my timing. But I’m not researching industry standards for every new client.
My approach:
This way I’m not overthinking it but I’m also not being rigid. Some clients really do have legitimate reasons for slower payments, and working with that gets me paid faster than fighting it.
Tried this once - total mess. Had different reminder schedules for retail vs service businesses. Wasted so much time tracking who got what reminder when.
Most clients don’t care about industry norms anyway. They pay when they feel like it. My construction guy pays faster than the marketing agency, even though construction’s supposed to have longer cycles.
Now I use one schedule for everyone. First reminder at 30 days, second at 45, phone call at 60. Way simpler and my collection rate didn’t drop when I switched back.