Outstanding Invoice - Virtual Assistant Forums

Donovanassist · #1 (**permalink**) 11-07-2008

I have a client who continually pays late and I have never assessed her a late fee, although it is stated in our letter of agreement. She was my first client and I don't want to lose her business, but she has yet to pay her latest invoice and I haven't heard from her all week. I always send her a reminder the day before her invoice is due.

My question is, how long should I wait before sending her a note to say I need payment in order to resume services? Her invoice is currently 3 days late. I do intend to assess the late fee this time, as she owes me quite a bit of money.

katekindred · #2 (**permalink**) 11-07-2008

Yes, this is always a tough one because you don't want to lose the client. But, it's hard for me to manage when people are chronic. So, while stressing how much I value the relationship, I would ask her that "in order to keep costs down" could she please pay as agreed, because of course you would "feel terrible" about having to impose the late fee, but late payments make it difficult to honor your own financial obligations. Sometimes, I've decided to just let go of the client, and the hassle, and let them find someone else to not pay as agreed.

Rebecka Melson · #3 (**permalink**) 11-07-2008

You shouldn't feel guilty about charging a late fee. A business is a business. I'm sure your client would charge late fees if that was their policy.

I email the invoices, then after 10 days email a statement as a reminder. I cease work at this point. If they send me work in the meantime I simply email them and tell them that I would be happy to start work as soon as payment has been received. I assess a late fee after 30 days.

So far my clients have been good and I don't have any delay in payment, unless they are out of town, but I usually know beforehand that they are going to be out of town.

I have burned by a couple of small project clients for under $50, so now I just require payment up front on project clients unless I have worked with them previously. I charge a deposit up front on all clients.

Donovanassist · #4 (**permalink**) 11-07-2008

I sent her a very nice e-mail this morning reminding her that her payment was overdue and that, as a small business owner, I hoped she understood the importance of me being paid on time so that I could pay my bills on time.

I also said that I valued her business and enjoyed working with her, but that I would need payment in order to resume my services. I know she got the e-mail (because I screen her e-mails for her), but I have yet to hear back from her. I would have thought the e-mail would have at least merited some sort of response on her part. I guess the next step is a phone call.

leedrozak · #5 (**permalink**) 11-07-2008

I would wait a day or two and give her a call "remindering" her that the invoice is past due and you would hate to impose the late fee if not paid in full. Maybe this will get her on the ball.