What do you do when clients pay late or don’t pay at all? How do you manage when your cash flow suffers and your income is stunted?
Hounding clients for payment can be uncomfortable, embarrassing, and no fun. However, it’s absolutely critical, especially in the first years of your business, to relentlessly track down delinquent accounts. An effective deterrent to late payment is charging a late fee.
State on your invoices that you will charge a late fee if payment is not sent on time. For existing clients who have not seen these notices before, you may send them a courtesy email alerting them to this change. Remember, you can’t charge a late fee on an invoice that does not contain this notice. Most invoices use 1.5% as their penalty.
When a client still hasn’t paid after the invoice date, just send the next invoice including a late fee. And you do that each month the invoice is late, so that the charges accumulate.
If you’d rather avoid this task, or if you don’t have time to do it, you can delegate to a Virtual Assistant. A persevering VA will not let any invoice go unpaid, clients will respect and value your hard work, and any glitches in your cash flow will be smoothed out.
Letting your VA follow up on delinquent payments not only brings you peace of mind but also saves you time. And you can focus on your business!
If you’re sick of hounding your clients for payment, get this chore off your plate. Contact me today, and we’ll talk about how to make your clients show you the money!