Late Payments

[d2creative]

How do you deal with tardy bill payers?
How long do you wait from the date on the original invoice before sending another?
Do you just send the same invoice or do you include some kind of late notice?
Do you charge a late fee or interest on the past due amount?

Thanks!

[Ahh!]

I used to trade services with a Karate School and charge Compound Fracture Interest.

[zepp]

Originally Posted by d2creative

How do you deal with tardy bill payers?
How long do you wait from the date on the original invoice before sending another?
Do you just send the same invoice or do you include some kind of late notice?
Do you charge a late fee or interest on the past due amount?

Thanks!

It's best to have your terms upfront and in writing on your invoice delivered to your client including length of time before the bill is late and administrative fees or late fees charged if late,

I'm currently thinking of adopting an administrative fee policy to be included on my invoice for the hassle of trying to collect over due invoices. The utility companies have done it for years with fee line on the bill to be discounted if the bill is paid on time. This would help in making smaller amount invoices worth the time it sometime takes to collect them. This fee would be in addition to the normal percentage interest fee normally noted on invoices.

As a courtesy, I normally contact my client a few days before the due date in case the bill has slipped their mind.

Let me once again HIGHLY RECOMMEND John Harrington's book entitled "Best Business Practices For Photographers"

The key thing here is to have all your ducks in a row and in writing to begin with so you have a leg to stand on should a client become delinquent

Good Luck.

Frank

[JamesB]

you need to get to know a guy named Vinney

James

[d2creative]

haha, thanks guys. I was trying not to bring my "family" into this.

Seriously though, I will add a line to my invoice statement late fees or something and check out that book.

But what about some of my questions pertaining what to do now?
This invoice is about 2 weeks past the 30 day mark so it's not that late yet and I know the client has it and I know she tends to pay them late. I just want to handle it correctly without ticking her off, but I also want my money.

[zepp]

Originally Posted by d2creative

But what about some of my questions pertaining what to do now?
This invoice is about 2 weeks past the 30 day mark so it's not that late yet and I know the client has it and I know she tends to pay them late. I just want to handle it correctly without ticking her off, but I also want my money.

Have you tried calling her and asking her about it?

[d2creative]

Originally Posted by zepp

Have you tried calling her and asking her about it?

No, I didn't know if that was weird or not.

Personally, I hate bill collectors.

[ndsimm]

Sometimes a phone call is necessary. A lot of the corporate clients I have need to submit my invoice to their accounting department and often it gets "lost" in the shuffle of paperwork

but as Zepp mentioned also, have the terms clear on the invoice so that is no misunderstanding

[HotHolly]

I found out that a few clients would hold their last payment until they had their last meeting with me before the wedding, which was past the due date. We have a final meeting before weddings to find out about changes and touch base on last time before their big day. I moved the meeting date to the due date and it fixed it. They weren't feeling like it mattered if they paid it on time or not and our contract has rather harsh terms about late payments. So I have no idea. I just figured out that I was able to get my money when I saw them. Not sure if that will help in this case, but its an idea.

[CobyPhoto]

What Zepp said. On all of my invoices, price lists etc. I have my "Hot Check" policy etc. stated. I found out via personal experience, that if you do not have it prominetly displayed on your literature etc. or have some type of disclosure that the client acknowledges, it won't stand up in court or legal proceedings if it comes to that.

I have a simple little disclosure statement that says: I (insert the client name) have read and agree to the terms etc. etc. and then they have to sign and date. It is on my info card that goes with EVERY session. So if they don't pay, I have in writing that they understood my terms and fees. Most times a simple registered letter with a warning that I am passing it on to a collection agencey, and those fees are now their responsiblity too, gets them to my studio with a check the next day or two.

Fortunately, I have not had to use that but once or twice.

I would definitely call thou, they may have simply forgotten about it and need a simple nudge. It happens to the best of us!

CJ

[Donner]

Remember, it's always easier to wave the late fee later than it is to try to add it on later. You can listen to their story and win a friend by being nice and understanding with some clients, while still letting them know that your policy is to get paid on time. It's always hard to play the heavy later.

[STP Images]

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[zach-e2]

forgive me if it's been stated before, but did you have a contract signed from them before hand stating when they were to pay you on a certain day?