How to Consistently Get Paid on Time without Alienating Clients

Don’t do something you’ll regret

Your options for securing payments are limited. You can’t exactly go on the warpath threatening legal action and demanding to be paid. It’s likely to annoy the client and make them mulish – nobody likes demands and ultimatums. Also, you could make a bad name for yourself in your industry.

What are you supposed to do, then? While your options are limited, they’re not non-existent. In fact, with some level-headedness and strategic planning, you could secure your due payments now and ensure you get paid on time in the future. Furthermore, if you do it right, you could even boost customer loyalty instead of diminishing it. Here are some suggestions:

Resend the invoice

First, try resending the invoice as a gentle reminder. Give them the benefit of the doubt – maybe they lost the previous one or forgot about it. Sometimes company software automatically rejects PDF invoices that are larger than a certain size. This also applies if you’re sending a large file or series of files. For the best results, you could compress a PDF online to make it easier to read. With the right PDF compressor, you can reduce the file size and combine elements while maintaining the quality of images, font, and other content. Also, include a due date and a friendly request with the invoice.   

Have a civil face-to-face conversation

If the reminder doesn’t do the trick (give it a week), it’s time to have a conversation with the client. It’s best to arrange an in-person meeting, if at all possible. Phone conversations are the second-best option. Emails can lead to misunderstandings. When you talk to the client, be calm, non-judgmental, and explain that you were expecting payment. Then give them a chance to explain their side of the story. Most people will, at this point, feel embarrassed and offer to make the payment promptly.

Communicate your expectations

When talking to the client, state your expectations – you would like to be paid by a certain date, according to the agreement (which you hopefully signed). It minimizes misunderstandings and helps put everyone on the same page. Depending on the client and the relationship you share, you could let them know late payments are hurting your business.

Offer alternatives

Your clients may have money problems of their own. Or they may find paying you an inconvenience due to the lack of offered payment options. You could offer alternatives such as payments in installments, flexible payment schedules, or supporting a different payment platform. 

Put some pressure on your client

Sometimes clients won’t agree to meetings or calls. Or they may ghost you after a meeting or call. In such cases, here’s what you can do: 

●       Take back your work: If you’re working for them, you can stop temporarily. If you provide a digital service, you could take it back. If your work is important, it’s going to make them sit up and take notice.

●       Send them a late fee request: Ideally, your work policy should include late fees. If a client doesn’t pay on time, it’s reasonable to charge them a late fee. Email them the total, and remind them it’s only going to pile up. 

Make sure it doesn’t happen again

Prevention is better than cure, as they say. You can learn from the experience and take steps to avoid a repeat:

●       Reminder system: A reminder system allows you to notify clients there’s a payment due a week or a few days in advance.  

●       A (tighter) contract: Before you take on any new work, ask your clients to sign a contract. Highlight the payment terms and include late fees. Nolo offers good advice.

●       Retainer: A retainer or escrow system can provide security to both parties. A mediator handles disputes if they arise. The client can’t just pull the money and disappear.

●       Advances: Ask for an advance for any work you take on, especially if you’re going to invest your own money for materials.

Boost customer loyalty

When you have a good relationship with your clients, they are much more likely to pay you on time. How do you build a good relationship? Be a professional and treat them well. Ask about their health and their business. Build a connection. Finally, you could also offer tangible rewards for doing business with you. Some examples are a reward program, freebies, and offering good quality for a reasonable price.

Conclusion

Remember – proving how assertive you are isn’t the goal, getting paid is. Be persistent and firm – but polite – and keep asking. You’ve earned the money and you deserve it, so don’t feel bad about it. Finally, don’t be afraid to explore legal options – like sending a demand letter – if everything else fails.