Been facing more late payments lately, which is throwing off my monthly budget.
I used to have most clients pay within two weeks, but now I’m dealing with invoices that are over 30 days overdue. The awkward follow-ups are exhausting, and I’m starting to think I need to revamp my invoicing process.
I just ask for half up front now.
Consider enforcing late fees after 30 days. This gives clients a reason to pay on time.
For larger projects, ask for half of the payment upfront. It safeguards your income and indicates that the client is committed.
I just call them after a week. Most people pay right away when you actually talk to them.
Net payment terms make a huge difference. Switch from “payment due in 30 days” to “payment due in 15 days” or even “payment due upon receipt.”
Also try these:
The key is being consistent with follow ups. Most clients aren’t trying to stiff you, they just forget or deprioritize it when there’s no consequences.
I had this exact problem about two years ago. What turned things around for me was changing how I invoice.
First, I split bigger jobs into smaller milestones with separate invoices. Instead of one $5000 invoice at the end, I do three $1667 invoices as we hit each phase. Way easier for clients to pay and keeps money coming in.
Second, I started requiring payment info upfront - like their accounting contact and preferred payment method. When they give you this during the good times, it’s much easier to collect later.
The other thing that helped was being more picky about new clients. I started asking for references from their other vendors. If they dodge that question or their references mention slow payment, I either ask for money upfront or just pass on the job.
Sounds harsh but my cash flow is so much better now. The clients who pay on time don’t care about these policies anyway.
Stop doing follow ups altogether. Put everything in writing from day one. My contract says work stops if payment goes past 15 days, and I actually stop. No exceptions. Clients who respect you will pay on time. The ones who don’t aren’t worth chasing around like a bill collector. You’re running a business, not a charity. Set the rules early and stick to them.