![]() ![]() Or, if you really can't face the task, hire a freelance virtual PA to do the chasing for you. Keep phoning every other day to add some pressure, and that usually does the trick. Sometimes having a chat is all it takes to ensure payment. ![]() If you've emailed several times, you've become increasingly firm, and you still haven't been paid – pick up the phone and call your client. Just a friendly reminder – if payment is not received within 30 days, I reserve the right to add late payment charges to your account, as detailed in my terms. I attach another copy with my payment details. Payment still hasn't been made for invoice 33. I'd appreciate if you could settle at your earliest opportunity.Īnd if several friendly emails don't lead to payment? Well, it's time to start getting serious and remind your client of the terms you initially set out. This is a friendly reminder that invoice 33 is now due for payment. In which case, save yourself time by having a prepared script you can call upon. You don't want to seem too demanding, but you have to ensure payment is made. You don't want to come across aggressive, but you need to be firm. Writing an email to chase for payment is hugely tricky and will naturally take you some time to construct. Have a script to hand for email reminders So, if the base rate is currently 0.5% – this means statutory interest for a new debt would be 8.5%. It points out that the interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ – this is 8% plus the Bank of England base rate for business to business transactions. Read this excellent guide from the government on Late Commercial Payments. You have to ask yourself whether it's worth threatening interest before you've even had a chance to prove your worth. But be warned – great client relationships are built on trust. It's really up to you how you set your terms. And that first 5% figure is then added to each recurring 30-day period until the full amount is received. Another creative stipulates that if the final invoice isn't paid within 30 days, a 5% 'delayed payment' fee is charged. Some people charge an extra 3% after 60 days – others 2% after 30 days. Inform clients that you charge interest for late payments Or you could go for the standard 30-day terms. That way, you've got a little insurance behind you, should payments be delayed in future. You could ask for a deposit – try 50% of the total project cost before work begins. (You could tell brand new clients that the first invoice always requires payment before work begins – to get going. You can request payment upfront, although this might be challenging. Not sure what terms to apply? You really can set your own. Talking about these terms early on will avoid any awkwardness further down the line. Terms of invoicing are one of those things that every small business owner will have to establish with each client. Remind yourself of these points whenever you feel yourself hesitating in future. It's the client who is being rude for not paying! Plus, you are totally within your rights to ensure you settle invoices. With all this in mind, you should stop thinking you're rude by chasing payments. If you don't get paid, you can't pay your bills – full stop. And, more importantly, you're entitled to get paid on time. Don't think you're rudeįirstly, you've done the work, and the client is happy, so you're entitled to get paid. If you're struggling and you're sick and tired of dealing with late payers, here are our top tips to help you get over that awkward hump (and avoid any issues). And you are entitled to be paid for the work you've carried out. It's never easy, emailing or phoning a client to ask for money. Chasing late payments on invoices is one of the toughest and most awkward jobs for any small business owner. ![]()
0 Comments
Leave a Reply. |