No. of Recommendations: 3
I would suggest that you incorporate in your invoices that if payment is not received within 30 days of the date of the invoice, you will charge a late charge of 1.5% or 18% per year. I find that to be a deterent to my clients who like to delay payment. Make sure you note states if the payment is not RECEIVED within 30 days.


I do the exact same thing on DH's invoices. In fact, I mark them as due within 10 days, and that interest accrues after 30 days. I also send invoices every 30 days, so if there is an outstanding balance, I also add in the interest. I have been surprised at how many people just pay the interest and don't complain, but more typically, it just reminds them that the bill is due. For the snowplowing accounts, on the first bill that I charge interest, DH will typically cross it out and initial it. That sends the message that he really just wants to get paid, and sometimes folks just need a reminder. However, he has some clients that just always pay late, so I just add interest to their bills each time it might be due, and we typically drop those folks as a customer the next year.

I also put these terms on all contracts and proposals so people know quite well up front what is expected.

As a small business, I also find that running it like a business with professional invoices that go out every 30 days really helps a lot because sometimes people think they can just skip paying you, and that's just not fair and not right.
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