Hello all,

 

Just wondering, what are your thoughts on late fees for clients who neglect to pay on schedule Do you use them, and if so in what kind of situations?

 

Thanks,

Nate

No, in my personal opinion just don't do it!

 

You need to build client trust so they come back to you for updates and so that they will give good reviews!

Personally I use them. As a business point of view you're shooting yourself in the foot. Regardless of the customer is always right, you do need mutal respect from both parties. Self employment (if that's what you're doing) needs cash flow otherwise you will be out of pocket. Best thing to do is highlight this out from the outset in your contract and ensure that the client agrees to it. Pulling out a late fee out of the blue is unprofessional and not something the client necessarily has to adhere to if you haven't agreed on it.

 

Client trust is paramount, of course, but if you're running a business - regardless of the industry - people need to get paid. You can stipulate in your contract that payment is due 7 days after completion or 28 days from completion - whatever the consensus is. How you go about it is up to you. There are some good tools out there you can use that chase invoices up too. Just make sure that you are aware what is stated in the automated requests - the last thing you want to do is send out a robotic response. That's not going to impress your clients.

 

Thankfully I've been lucky and have worked with some great clients who always pay on time. I guess, if there was a problem with late fees that resulted in non-payment, it would be pursued in the small claims court (gulp). We all have bills to pay... However, if you meet the client's criteria they usually reciprocate

"F**k you, pay me". - Mike Monteiro (sure everyone has seen this by now)

Edited March 9, 201313 yr by AaronAlderman

"F**k you, pay me". - Mike Monteiro (sure everyone has seen this by now)

 

Nope - didn't get chance to see this - looks great! In the meantime, anyone else who hasn't seen it yet (I live in a bucket), there is a link at Vimeo http://vimeo.com/22053820

 

 

** Sorry edit ** Apologies. My first video link. Thought it was just going to give the hyperlink only and not the embed **

Nice one, very famous

 

Here is an article I red the other day about an approach to clients who are late in their response to you (late in providing feedback or content or generally late to answer your emails and holding you back).

Very interesting read https://medium.com/i-m-h-o/ec405cab3d39

Edited March 9, 201313 yr by teodora

How to tackle late payments?

Simple.

 

Stipulate a payment schedule in the scope/contract (if you don't have one, you're an idiot) that the final work is released on final payment.

 

It's honest, it's completely fair and everyone knows where they stand from the start.

I charge 3% per week after a 28 day invoice period, never really had to follow up on it, the clients that have been late are very trust-worthy and new clients seem to take to it quite well and I think they view me in a more professional light because I've added charge warnings.

That's quite the incentive, AcheaShadow

 

Clients take you a little bit more seriously when you stipulate late charges with a percentage. It's great that there is some mutual respect going on and it isn't one sided (i.e. you working your socks off for a client, bending over backwards then they pay you late!)

That's quite the incentive, AcheaShadow

 

Clients take you a little bit more seriously when you stipulate late charges with a percentage. It's great that there is some mutual respect going on and it isn't one sided (ie you working your socks off for a client, bending over backwards then they pay you late!)

 

As a freelancer you have to take steps to protect your income, people paying late means that bills don't get paid on time and then you get charged so why shouldn't you relay that cost to your clients, after all it's them that put you in that position.

Gotcha. Thankfully I've had great clients that pay on time and always professional (don't want to jinx it!). My ongoing 'issue' as such is a client understanding the amount of work that goes into a website, logo or illustration. It's not simply cut and paste from a Word document. I pity the fool

Hmmm I find it's pointless adding more on top as late fees, if they didn't pay the first one like hell they will want to pay more on top. For new clients it's 50% up front, 50% on completion but we go 'live' once the bill is paid. After that it's trust, some of my clients always pay the second the invoice lands in their inbox and for them I'm as flexible as possible as I know they are good for it, for others it's like pulling teeth so I stick to the 'live' on payment for updates.

50% up front is great and what I usually try to stick to. A couple of the last things I did, I didn't take payment until the end (luckily both were model clients), but the same applied where I release the work on receipt of payment.

50% up front is great and what I usually try to stick to. A couple of the last things I did, I didn't take payment until the end (luckily both were model clients), but the same applied where I release the work on receipt of payment.

 

Did you like the f*ck you pay me video though right? Puts a nice spin on things lol

Bloomin' time! I haven't watched the whole video but I have it bookmarked and I will definitely get round to it. Been juggling a handful of projects like a child theme, business cards and mismanaging time in general by loitering here all the time. It's a great video though - thank you for bringing it to my attention

F*** you, watch the video.

 

How to tackle late payments?

 

Simple.

 

Stipulate a payment schedule in the scope/contract (if you don't have one, you're an idiot) that the final work is released on final payment.

 

It's honest, it's completely fair and everyone knows where they stand from the start.

Is how I work.

 

When it comes to updates, maintenance, seo etc etc, it's 28 days, 7 days after that 28 days is up i send a reminder with a late fee attached. All stated in the contract they sign before I start work.

F*** you, watch the video.

 

 

Touche

Make sure your Ts and Cs allow you to withdraw the license for work if payment is more than X days/weeks overdue.

 

If you get a deposit of 30-50% in advance, this means the customer will have paid that, and not have use of their web site or whatever work you've done for them until they pay.

 

If it goes overdue and they still don't pay, you ask them to remove the work in accordance with your Ts and Cs, if they don't you look up their web host and notify them of a copyright infringement (which it is if there is no license). Hosts are normally very helpful, and it generally gets the desired result.

 

It's important of course to be reasonable and give plenty of warning and nudges before you get into heavy stuff. But in the end, he who shouts loudest often gets paid first, which is important if there are cash flow problems.

100% put in your terms that you charge interest for late payments

i wouldnt recommend it since most of them would be reluctant to pay it lol

i wouldnt recommend it since most of them would be reluctant to pay it lol

 

Reluctant or not, if it's specified in the contract, clients should stick to the t&c.

i think you dont do this because a client may any type of a person , you have to win the his trust on you and your work,

it may a client got some problemm so he/she can't pay at time. but if we treat him/her like somr thing out manners . it can be lose in our buisness, and the we can loose our client.

you have to be a bearfull man and be patient for the sake of your buisness, if a client trust on you it will refers to others for you, and this is the benefit of good behaviour with the client.

Nope - didn't get chance to see this - looks great! In the meantime, anyone else who hasn't seen it yet (I live in a bucket), there is a link at Vimeo http://vimeo.com/22053820

 

 

** Sorry edit ** Apologies. My first video link. Thought it was just going to give the hyperlink only and not the embed **

 

Really great video, thank you for linking me to that!