Serious question, what's your go-to move for clients who drag their feet on paying?

I used to have this client who would always take forever to pay... it messed up my cash flow big time. So I started adding a late fee to my contracts, just a small percent after 30 days. At first, I was scared it would push clients away, but it actually made them take me more seriously. Now I bring it up early, like when we talk about the project cost. I say it's standard practice to keep things smooth for both of us. Since I did this, I've had way fewer late payments... and when they do happen, at least I get extra for the hassle. It's not perfect, but it's saved me a lot of stress.

3 comments

3 Comments

casey_torres525d ago

Seriously, is a late fee worth the awkward conversation? Chasing clients for extra pennies can sour a good relationship faster than the late payment itself. I'd rather just drop slow payers and find better ones.

laura_baker25d ago

How can you call late fees extra pennies lol? That's the most out of touch thing I've heard all week. For a lot of us, that's grocery money or part of the rent. Letting that slide just tells clients your time and your bills don't matter. I'd rather have the awkward talk than quietly lose money I was counting on.

noahmartin4d ago

That 2% late fee in my contract is my favorite employee. It never calls in sick and always gets results.

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