Getting Paid on Time: Tips for Chasing Late Payments
Late payments are one of the biggest frustrations for small businesses and freelancers. Chasing debt isn't just awkward—it can disrupt cash flow, delay growth, and strain client relationships. If you're dealing with clients who consistently pay late, here are a few strategies that might help:
Clear Terms Up Front
Make sure your payment terms are crystal clear before any work begins. Include due dates, late fees, and preferred payment methods in your contracts or invoices.
Automated Reminders
Use accounting software to send automatic reminders before and after the due date. A polite nudge often works better than a frustrated follow-up.
Incentivise Early Payment
Offer small discounts for early payments or charge interest on overdue invoices. It’s amazing how quickly people pay when there’s money on the line.
Pick Up the Phone
If emails aren’t working, a quick call can cut through the noise. Be firm but professional—sometimes clients just need a human reminder.
Keep Records
Document all communications and payment attempts. If things escalate, you’ll need a clear paper trail for legal or collection purposes.
Consider Deposits or Milestones
For larger projects, ask for a deposit or set milestone payments. This reduces risk and keeps clients accountable throughout the process.
Use a Collection Service (as a last resort)
If a client consistently ignores payment requests, it might be time to bring in a professional. It’s not ideal, but sometimes necessary.
Would love to hear how others handle late payers—any tips or horror stories?