I have a client that I have had for 6 months. He is my highest paying client and a really nice guy. However, he's been nothing but a payment problem since the beginning. There have been short periods of time throughout where payment has been regular but more often than not, he falls delinquent. He has been as much as three weeks behind before and more than once. It's not that the money isn't there, it is just that he forgets or does not get around to it. When he does not pay, I send him reminders on an almost daily basis. Any suggestions on how to handle him? I really don't want to lose this client but this seriously stresses me out. It seems like sometimes I spend more time trying to collect payment from him than actually working.

Is he on retainer or hourly? If retainer can you get him to sign up for auto-bill pay from his bank and send you a confirmation that he's done it?

If he's hourly I'd request a deposit.

Personally I'd probably get rid of him. If you do want to keep him though, set up a deposit with the agreement that if the payment goes more than X days late the entire deposit is forfeit and the contract is terminated.

I hope you're charging him late fees and interest...

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Amanda Moore
Virtual Assistant
VagabondetteVA Blog

You could also get him to set an auto-pay from a credit card (if he's retainer). If he's hourly, then I'd get a big deposit from him like Amanda suggested. You could always pose it that as his Virtual Assistant you are trying to help keep his bill paying on time and organized and that this would be a solution that saves you both time.

I also agree with Amanda about the late fees...perhaps that will help him remember...

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Kimberly
Facebook Marketing Magic!

He is on retainer. I have tried many methods of paying. At first he tried having his company send checks but there were problems with the electronic check issuance process. Then we tried direct deposit but there were even problems with that. I even switched him to paying 1 month in advance a while back but went back to weekly because the way he was doing things made it where I would lose out money (because there are not 4 weeks in all months). I finally have him on PayPal, which has been working well. He has complete control over paying me (and not his company). However, he has been on vacation this last week and has not only forgotten to pay me but has stopped responding to my reminders to do so. It's getting ridiculous. I keep him as a client because he's a nice guy and because he eventually does always pay me. It's just getting there that's such a problem. Also, I took him on as a client before I started having people sign contracts, which also means I have not been charging late fees and interest. I am learning...

Erica - Even though he's constantly late, it sounds like you may still have a good working relationship with him. He doesn't seem to mind your reminders right? Why don't you mention to him that all of your clients are on a 'contract' and that you really like the working relationship but may need to consider including him on one since you are losing money when he's late. You're losing money since the time you are spending with reminders and follow-ups can be spent working on other projects. It doesn't sound like you want to lose him as a client either. Maybe just come out and ask him if he prefers you remind or follow-up with him in another manner since the other ways don't seem to get a response. He's sounds like he is a very laid back kind of person and those are the people that usually work on their own schedule which is usually the opposite of everyone else. Good luck with this client and hopefully you can come to a resolution that works for both of you.

Definitely get him on a contract ASAP. Even if you didn't start with them there is no reason not to switch. Just tell him that for both of your protection you've decided to put all clients on contracts so you'll need him to sign if he wants to continue the business relationship.

I'd get a deposit. Perhaps you can get him to pre-pay enough for a few months of service and just draw down from that and about a month before it is empty you bill him again for the next quarter? Then you'll only have to do this quarterly instead of weekly/monthly...

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Amanda Moore
Virtual Assistant
VagabondetteVA Blog

Ultimately the decision is yours but I would get him to sign a contract that states interest is payable on late payments, that he must be a month in advance and that you will stop work on his tasks/projects until payment is made. Maybe he needs a little training up?

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Kylie Short
Tilda Virtual Services - Making virtual personal

Set him up on weekly payments. Perhaps an equal amount weekly via direct debit or paypal, and then invoice him for any extras once a month.

I have a client who for 2 years paid me weekly - her bills were always over $2k a month so she would pay me $500 a week as a regular payment and in the first week of the following month she also paid any extras over and above that amount. We've been working together for years and this has worked well for us.

If he's on retainer, is it payable in advance? If so, the answer is simple - you don't do the work until you get paid. That's how I'd handle it.

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Julia

I agree completely with Julia. Make it clear to him that you will not do new work if you are not paid for work done. He will remember that and pay!