Been on the hunt for overdue payments for what feels like ages. Those polite reminder emails just don’t seem to make a dent anymore.
I’ve tried being a bit more straightforward lately, and it seems to be making a difference. I’m interested in hearing what other freelancers have done to successfully encourage clients to settle their debts without ruining relationships.
I switched to requiring payment upfront for new clients after getting burned too many times. For existing clients, I cut off all work the moment payment is late.
Sending certified mail instead of emails gets attention fast. People take physical mail seriously, especially when they have to sign for it.
Also started factoring really late invoices to a collection company. They buy the debt for about 70 cents on the dollar, so I get paid immediately and don’t have to chase anyone.
Phone calls work better than emails. Most people ignore emails but they’ll answer the phone. Call them directly and ask when you can expect payment. Don’t be apologetic about it.
I also add late fees to my contracts now. Makes people pay faster when they know it costs them extra to wait. Usually 1.5% per month after 30 days.
This video covers some solid collection techniques that have helped me get paid faster:
Stop work immediately if they don’t pay on time. That gets their attention real quick.
Payment plans saved me from writing off a bunch of bad debt. When someone owes you a big chunk, break it down into smaller monthly payments they can actually handle.
I also started checking references before taking on bigger projects. Takes five minutes to call their previous vendors and ask if they pay on time.
Here’s what made the biggest difference for me:
One trick that works is offering a small discount for early payment. Like 2% off if they pay within 10 days. People love feeling like they got a deal and you get paid faster.
Most clients aren’t trying to screw you over. They just have bad systems or cash flow problems. Being flexible but firm usually works better than going nuclear right away.
I just show up at their place unannounced sometimes.
I started sending invoices with specific payment dates instead of just “net 30” or whatever. Like “Payment due by March 15th” makes it feel more real than “due in 30 days.”
What really moved the needle for me was switching to a three step process. First reminder goes out 7 days after the due date - just a simple “hey, this is overdue.” Second one at 14 days with a firmer tone. Third one at 21 days where I mention turning it over to collections.
Never actually used a collection agency, but mentioning it usually gets them moving. Had one client who owed me for three months suddenly pay within 48 hours after that third notice.
Also learned to ask for partial payments when they claim they can’t pay the full amount. Getting something is better than nothing, and it keeps the relationship from going completely sour.
Small claims court works if you have good records. Filing fees are cheap and most people settle before the hearing.