Late payments are becoming a real hassle for me. Right now, I’m just firing off emails whenever I think about it, but that’s not cutting it.
I’m considering a more organized strategy, like setting reminders to follow up. What do others do to manage this without it taking over their lives?
I use my phone’s calendar for this. Three reminders per invoice - 7 days before it’s due, on the due date, and 5 days after.
Make it automatic so you don’t have to remember. I also track everything in a basic spreadsheet with invoice numbers and dates to see the whole picture.
Template emails are a game changer. First one’s friendly, second’s more direct, third mentions late fees. Removes the emotional stuff and saves tons of time.
Most people pay after the first or second nudge. The ones who don’t usually have bigger problems going on.
I set up three simple buckets that work great:
I batch everything on Friday afternoons. Takes 30 minutes and I can see where everything stands.
Be consistent but don’t be annoying. Some clients are slow payers but they always pay. Others are red flags from day one.
I also ask new clients about their payment process upfront. Saves headaches when you know Janet from accounting only processes invoices twice a month.
Net 30 with late fees clearly stated on the invoice helps. Charge 1.5% monthly after 30 days to encourage timely payments. Most clients pay on time when they understand the costs of delays. If they stall, I make a call on day 31. Skip the endless email exchanges. Direct phone calls are more effective. If there’s still no response, the late fees kick in with a final notice. After 60 days, it’s either collections or write it off.
I just call them after a week or two. Phone calls work better than emails most of the time.
I keep it simple. I send the invoice with clear payment terms and follow up 7 days after it’s overdue.
If there’s no reply, I wait another week and send a final notice. After that, I either add late fees or stop all work for them.
Sticking to a routine helps. Choose one day a week to handle overdue accounts instead of addressing them randomly.
I just ask for half upfront these days.