I'm currently dealing with a client who's three weeks late on their payment, and it's really got me thinking about how to manage these situations better. Do you have any systems in place for handling late payments? I'm curious about how common this issue is and what tools or methods have worked best for you. Also, for those who have experienced this, how much time do you find yourself wasting on trying to get paid? Any success stories or horror stories to share?
5 Answers
I use Zoho for billing, which has an automated reminders feature. If someone doesn't pay by the due date, I stop work and let them know their deadlines are pushed back until they settle up. It's nothing personal, just business! Oh, and I never hand over files until full payment is made unless I really trust the client.
I started taking 50% upfront and charging a 2% late fee after 10 days. Honestly, it's been a game-changer for me! The worst part is those clients who ghost you when payments are due but then reach out for 'small updates' like nothing happened.
I've found that requiring 100% payment upfront is the best way to go. I used to chase invoices, but I got burned too many times. If potential clients push back, I just show them my portfolio and provide references. Plus, paying through services like Square gives them buyer protection, which helps reassure them.
I usually ask for a 50% deposit and then the rest before delivery. We even break it down by milestones based on project scope. If clients don’t pay on time, we halt work and it's clear their deadlines will shift. It keeps everything organized and helps manage expectations.
That sounds like a solid plan! I like how structured it is. Have you found it effective in preventing payment delays?
My strategy depends on the payment type. For new projects, we don’t go live until everything is paid in full. But if it’s just for hosting or licenses, we send a warning and then cut them off until they pay up. It keeps things clear and straightforward.
That's definitely a smart move! Does requiring full upfront payment ever drive away potential clients, or has it actually helped attract better ones? I'm curious if others feel the same.