Late payments
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- Affluenza
I am freelancing for a couple of pretty large companies and charge them both the going rate hourly. Point being, they are are my main source income. One of them is pretty shitty at paying on-time, even by their own standards.
I was wondering how long you leave it to charge for late payments and if you charge a nominal fee or by percentage? If you can at all?
Tried to filter, but if I've missed a thread, sorry.
Thanks
- rainman0
+1... wondering the same thing. I have a company 55 days past due (on top of the 30 days they got before it was late). Total BS. You get your shit done on time and all they need to do is pay you and they can't even do that, on time!
(sorry... hit a nerve)
- mcLeod0
put something in your contract with the client that spells out the payment terms including how late before you start charging and how much more you will charge per week or month.
- rainman0
I really don't think late payments do much... other than tick them off. Something you normally don't want to do since every contact is a potential for more or new business.
- Affluenza0
That's the good thing about bigger companies, I don't mind pissing off the accounting people, they don't give me the work :)
- refunktion0
don't ever do contract for nike.... the have net 30s, 60s, 90s and even 120s. (you won't get paid for fucking months)
- MISTERKIJI0
just stipulate in your agreemtn that you expect to be paid in a timely manner.. (state timeframe) or else you (the client) will incur a penalty of (some odd percent of total project fee or current amount due) all in all as long as you have it in the agreement you have merit to make a claim in court. Honestly it should be the last course of action especially in the case of bread and butter regular clients.
- nilsnihil0
29
- fyoucher10
Should be something you make very clear ahead of time. Mine are typically net 30, I've had some that paid net 60 which sucked a big one, and then I have great clients who overnight Fedex me a check the day after I invoice. By clients I mean the ad agencies I work for.
I also include this on my invoice for clients who like to pay a wee bit late, I've only had to enforce it twice:
LATE FEES: Payment not received within 30 days will be subject to a late fee of $50.00. An additional, monthly interest rate of 10% of the remaining balance due, will be applied each month, for as long as the account remains overdue.
- arthur0
Bbig or small, I haven't charged late payments, and my clients are late about 20% of the time. Repeat business is crucial to my business, and I need to maintain a good relationship with my clients. I find a friendly email reminder does the trick.
- akrokdesign0
you should charge late fee. you should be firm with them. as soon you let them run around, like kids. they don't respect you at all and do what ever they want.
one more thing, when they are late. then your are late. and when your are late. you get fees, also you relationship printers, programmers, etc. goes sour, cause of it.
so, its one hell of bad circle.
- If I charged late fees, I know I'd lose a couple clients. It only ends up hurting me, and I always get paid.arthur
- i just looked at your client list. quite nice one. too bad they take advantage of the littel guy.akrokdesign
- haha - i do fine, thx akrokdesignarthur
- good to hear. :-)akrokdesign
- horton0
i include the 1% late fee clause on invoices but have never actually used it, even on very late payments.
what are your payment terms for hourly clients? maybe consider bumping it to 15 days if you're currently at 30. you're not a bank, not unreasonable for an hourly regular client.
i recently did the same, not that i actually expect to get payed in 15... but a reminder email after 2 weeks makes a check after 30 doable.
- horton0
15 or 30 days?
http://www.qbn.com/topics/572204…
- nosaj0
Talk to your contact - the person you're interacting with may not be insync with the accounting department. Putting on a late fee will drive people nuts... it won't help - probably just hurt in the long run.
- i agree - yr contact usually has no idea you haven't been paid. if yr really gonna complain, contact accountingarthur