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Kris LarsonSlow-paying clients

Written by Kris Larson from Carthage on November 29, 2007

I’ve written before about what to do when you have a client who doesn’t pay you. The situation I’m in now is a little different: I have a client who does pay me, but it’s invariably late and I always have to send several emails before I get a response. (For the record, it’s not Kevin!)

In some ways, constantly late payments are worse than a one-time default on a payment. Every month I get angry and depressed, feeling that my work is undervalued because my payments aren’t made on time. I usually have to spend a week or more constantly asking to be paid before I get my fee.

But enough whining, right? I’m lucky to have a gig I love, and I know it. I thought this month, instead of moping around, I would share some tips with you all on what I do when a client is consistently behind with payments.

Don’t get mad
I have a hard time with this one. Even though my brain knows the client is disorganized, or super-busy, or just forgetful, I still feel like it’s personal. Of course it isn’t. A non-payment is just that: it’s not a personal attack. When you start to get mad, draft an email and then save or delete your draft: DON’T send it and DON’T enter the email address. (I can’t tell you how many times I’ve clicked “send” instead of “save” when drafting an email.) Sit on it for a week and then you can look at it again. I guarantee you’ll be glad you didn’t send it.

Don’t get embarrassed
It’s hard to ask for money. A lot of us learn at an early age that it’s rude to demand things, and vulgar to discuss money at all. Unfortunately, sometimes the only way to get paid is to be a gnat in somebody’s ear, a buzzing, daily distraction that they can’t avoid. You don’t have to be rude, but you do have to be persistent. A daily email or phone call with a polite request for payment is completely acceptable. In fact, it’s necessary.

Do get creative
I’ve been mapping out a long-term strategy with my own slow-paying client. This month I’m going to try to help my client create a schedule for future months. I’ll suggest we pick a date on which he can pay me every month. He can make it a recurring appointment and add it to his Outlook calendar or whatever he uses. If that doesn’t work and he’s late again next month, I’ll try sending my formal invoice. (It’s easy to create your own letterhead with the word INVOICE in bold at the top.) Maybe having a backup document will help remind him to pay me.

However much I am tempted, I won’t do the following:
- Wait until a week after my deadline to complete my work, so he knows how it feels.
- Write emotional, piteous, pissed or pleading letters demanding my money.
- Show up at his house with a banana cream pie and start a one-sided pie fight.

Remember, we’re the professionals, and they’re the poor hapless folks who need us and our blogging talents. No matter how difficult it may seem, maintaining your professionalism will pay off in the end, as you earn a good reputation and keep your existing clients happy. Anyway, that’s what I keep telling myself.

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Written by Kris Larson from Carthage on November 29, 2007 | Filed Under Making Money
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3 Responses so far | Have Your Say!

  1. Frank C  |  November 30th, 2007 at 1:01 pm #

    Frank C - Gravatar

    I had one client, a major local HVAC company, that didn’t pay me for 6 months. It took call after call but finally they paid. I can imagine what would have happened if I didn’t pay them for air conditioner work quickly.

    Another refused to pay period. I ended up writing that one off rather than taking them to court.

    A friend of mine who runs a cleaning business is a lot more forceful than me. He went to a non-payers office and stayed there until they cut his check. Probably not the best thing to do but he needed the money ASAP to meet his payroll tax obligations.

  2. Immomsdaughter  |  December 1st, 2007 at 7:34 am #

    Immomsdaughter - Gravatar

    I had a client which was prompt initially. Then, he started paying via cheques and that does not clear when the time comes. After that, he refuses to answer my emails. Finally, I threaten to expose him as a scam on all blog forum and then, he replied my mail. Paid a portion of my fee and still owes me about 30Euros todate. I know we do have to project a professional image but I was left with no choice.

  3. Dave Starr --- ROI Guy  |  December 2nd, 2007 at 4:54 am #

    Dave Starr — ROI Guy - Gravatar

    Always remember the opposite side of the coin … are you sure the clients are being properly reminded? When i worked in an office monitoring contracts to a number of small businesses know what my number one issue was? My boss rated me on getting contractor’s invoices paid on time … in fact paying early so we got a discount … you do bill your customers on terms like 2/10 net 30, don’t you?

    The many small companies I was monitoring would consistently get “too busy” to get their invoices submitted. I wound up having to run my own “off the record” book keeping system and sending out reminders to the people who were supposed to be billing me to … well, bill me. A friend said to me, “you should retire from this job and run your own business.” My response to him was, “I already am running about 10 of them already.” ;-)

    I know this won’t apply to everyone with the problem, but there are some books and other good advice out there on how to set up your collection scheme … timely reminders on schedules, thank you notes, etc. There’s an art to billing, as well as a science.

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