Dealt with a client who vanished for months over a $2,400 invoice. Sent a demand letter via certified mail and finally got my payment.
This experience highlighted the need for better systems to prevent such delays. What tactics have you found effective when clients procrastinate on payments?
I include late fees in my invoices starting from day one. Generally 2% per month after 30 days.
Clients tend to pay on time when they know there is a penalty. For those who still delay, I remind them that the fees are accumulating and send revised invoices reflecting the late charges.
I just ask for half upfront before starting anything.
The certified mail trick works great. I also started adding payment terms right on the invoice that say “Net 15” instead of the usual 30 days.
For stubborn cases, I offer a small discount if they pay within 48 hours of my call. Something like “Hey, if you can get this sorted by Friday, I’ll knock off $100 for the hassle.” Works more often than you’d think.
I learned to stay friendly but firm. Getting angry never helped me collect faster.
I just stop working for them if they don’t pay after a couple reminders.
When a client is late on payment, I pause all work once it’s 30 days overdue. No exceptions. I call them directly instead of sending emails that might get ignored. Most times they just forgot, or there’s a hold-up on their end. If a week goes by without payment after my call, I send a final notice stating that collections or legal action will begin in 10 days. This approach has a high success rate.
Phone calls beat everything else I’ve tried. Email is too easy to ignore.
Here’s what usually works for me:
If they dodge my calls, I start calling every few days until they pick up. Most people will eventually answer just to make the calls stop.
The key is being persistent without being a jerk about it. I treat it like any other business task that needs to get done.