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Six Best Practices for Managing Late-Paying Clients

Have you ever found yourself anxiously waiting for a payment that is taking forever to arrive

That is a feeling we know all too well. Getting paid on time is such a blessing. 

Not only does it make you feel valued, but it also helps you plan for the future and meet financial obligations. Clients who pay on time also demonstrate professionalism and reliability, which is always appreciated.

What should you do when a client is taking ages to pay? 

When clients pay late consistently, it can significantly impact your financial stability and even cause stress and frustration. It’s essential to establish clear payment terms with your clients to ensure a smooth working relationship.

You need to be prepared to walk away.

Walking away from a client is always a difficult decision, but in these cases, it’s a necessary one. If a client doesn’t prioritise paying you on time, it can be a sign that they don’t value your work as they should, and this may affect the quality of your services.

But before you type in your 2-week notice, there are still steps you can take to try to resolve the situation. Here are six tips to help you get through the ordeal of being paid late and ensure timely payment.

1. Set clear payment terms

Make sure you and your client have agreed on the payment terms, such as the payment amount, due date, and any late payment penalties, before diving into any work. Put these terms in writing and give a copy to your client, so everyone is on the same page.

2. Ask for advanced payment

If your client doesn’t pay you the first time, don’t wait around for it to happen again. Consider asking for an advanced payment so that you’re covered. It’s always better to be safe than sorry, right?

3. Remind your client on your next meeting

Don’t be afraid to bring up the issue of payment during your next meeting or communication with your client.

4. Follow up with a phone call

Give them a quick phone call to touch base and see if there’s any issue on their end causing the delay in payment.

5. Offer payment plans

If your client is struggling to pay the full amount, offer them a payment plan or break it down into smaller, more manageable payments.

6. Enforce late fees

If your payment terms include a late fee, make sure to enforce it if the client continues to be late with payments.

7. Consider legal action

If you’re having trouble getting paid, and they repeatedly fail to pay or refuse to pay, it’s time to consider taking legal action to collect the debt. To get a better understanding of your options, it’s a good idea to consult with a lawyer.

Always keep things friendly and professional while dealing with late payments. Maintaining a positive relationship with your client can lead to future opportunities and keep the door open for more work.

Be assertive and proactive in chasing payments.

We know you take pride in your hard work and unwavering patience. You understand the value of your clients’ time, just as they should appreciate yours. You always strive to give your best effort in every project you undertake, while maintaining a high level of professionalism throughout the process. 

You deserve to be compensated for the quality work you provide, and timely payment is essential to your success. 

To raise the bar for Filipino freelancers, it is important to be assertive in pursuing what you are owed to continue delivering outstanding work for your clients.

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