Late Fees
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- GammaRay
How do you get a client to pay you late fees?
I have a client that's 23 days past due on one invoice and 18 days past due on another. I specifically put into my contract that there is a late fee assessed (and how much) if they pay past 30 days from the date the invoice is submitted.
I've actually never collected on this with any client that's paid late...and I've been doing this freelance thing for a while now...I think I'm just scared that they'll think it's a dick move on my part and not want to work with me ever again...and, for me, the long-term relationship is always better than getting paid late fees. Any thoughts and/or suggestions?
- chossy0
Wait for the full 30 days then send out a new invoice.
- dan53820
Dude, charge it. I just send a new invoice including there late fee's to remind them to pay up sucka!
- MrDaro0
remind them politely.
- Spookytim0
I have an accumalting 15%pcm for late payments. t first I policed it rigourously and made clients pay it as punishment. It got nasty but I always, always won. Trouble is I lost clients becuase of that. One huge client told me they would never work with me again for example, and my crime was simply forcing them into paying me what they contractually owed me. So even though I won the fight, I lost becuase they got pissy about it.
Now, I still have that clause in my contract, but I use it to get them to take action and pay me on the amount, so its like a threat, and I play the game of saying I'll let them off if they settle up.
If a client really repeatedly offends me with tardy payments though I make the decision not work with them any more and so collect my late fee.
- chossy0
Oh they will think it is a dick move on your part but it is your choice, if you can live without the client do it fucking do it pricks, if not then don't and just send them a letter saying you will charge them the normal invoice fee but make sure they are aware they are getting some money off.
- mjg0
mail them a fish
- GammaRay0
Thanks Spooky...that's EXACTLY what my thought process is. I guess gentle nudging by contacting them when it's getting close to the 30 days and reminding them of the late fee and payment, etc is something I should try next time around.
- The_CCG0
Remind them, and then suggest you will have to work with payment up front on future projects.
- billl0
the bigger they are the longer it takes
- GammaRay0
Thanks peeps.
Yeah, for some reason almost all of the clients I have worked with like to wait until the 45 day mark...get as much interest off the money before sending it my way I guess...but still, it is annoying...especially since they wait until the 45th day to cut it and mail it and then you don't get it until like the 50th or 55th day.
Most of the time I'm looking to maintain and grow client relationships...so going the gentle reminder route on day like 28 or something might be the way to go.
- harlequino0
It doesn't hurt to ask up front what their billing policy is either. Some places have a clear 90 payment cycle. It sucks, but it is what it is.
- GammaRay0
Ah, nice, excellent point harlequino.
- ismith0
My dad still gets payments from Polo up to a year late, it causes some really shitty cash flow problems. Do whatever you can to get your money quick before they forget about it.
- MSTRPLN0
Net 30 is pretty standard.
As long as this was mentioned in the contract and the original invoice that after 30 days if payment was not received, a new invoice would be drafted to include these specified late fees then you should be good.Otherwise get some hired goons
- jpea0
30 days is a standard agency cycle, so I usually remind clients at around 32-35 days to ask their account person to check into it. Usually solves those things pretty quick. If they don't pay within 60, they're probably not a client you want to keep anyway so press harder at that time.
- epete220
do you guys get the 50% upfront on your freelance projects?
- Amen0
30 days.
if you think about it, they're asking you to get things done within 24hrs or asap. but why they should pay you late, that's bullshit to me... you dont need this kind of client.
- GammaRay0
Yeah, I absolutely get 50% upfront. I invoice as soon as they sign the contract.
- skwiotsmith0
It also depends on who your client is. With a lot of large corporations, it takes upwards of 90 days to get paid because of how their finance/hr departments work...