Group: I was just curious what different people's policies were on sending out reminder invoices.
I have one client that I always seem to have to send a reminder to. And now I have a newer client that sent a check out right away for the first month, and now it's the due date of their invoice, and I gave them ample notice.
What do I do? Do I politely send out another reminder, or do I wait another few days until Monday.

The only part that frustrates me about having my own business is the few clients that you seem to have to remind. If we were their employee they wouldn't delay in paying. What part of being Independent makes them think they can pay when they feel like it. We help keep them productive, we should be a valuable source

I had one client that I reminded a few times, because I kept getting these really bizarre excuses why they hadn't mailed the payment yet, and they ended up turning it on me, and I don't have them as a client anymore.

It seem's like such a fine line between standing firm, and being patient. Does anyone else feel like they ever have to play this yo-yo game every single month?

On the flip side, I have 2 clients that are extremely faithful about paying promptly, so I guess I just needed to vent today...! Thanks for listening.

Kailu

I would send a reminder the day after the money was due and not received. In that reminder I state that I will RESUME SERVICES once acceptable arrangements for payment have been negotiated or I received the payment.

This is in the initial agreement that they sign as well.

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

Tamika: Thank you so much, that helps in a big way, so that is what I will do! Have a great 4th!

Kailu

Kailu,
I had lots of the same kinds of issues early on in a few client relationships so I set up a late payment policy which is outlined in full text on every single invoice I send. I also actually do charge the fees if communication isn't kept up should the client have the once in a while issue with paying on time - but that is a rarity now.

I invoice on net 14 every other week so I send out an invoice on Friday. The following Friday I send a reminder. If payment is not rec'd by the end of the business day the Friday that it's due I send a final notice with a note to the effect of 'I really don't want to charge a late fee here...' - if I don't hear back or rec'v payment by Monday the late fee is added to their current invoice.

I used to feel like it was really pushy to ask for my invioces to be paid but the thing I've learned these past few years is if you take getting paid seriously and treat it as an expectation, with consequences when necessary, your clients will too.
When I was first adding my late payment policy and charging the first couple of late fees I felt guilty but reminded myself of my internet bill, my water bill, my rent, etc. - they expect to be paid and if they don't rec'v what's due by the date required there are penalities to deal with.

As much as we may like some of our clients business is still business!

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Tess is so right, but the thing that gets me is.. The one client that has been a day or two late (always the check in the mail client) get extremely irritated when people don't pay her on time for her services. I mean VERY IRRITATED. So I don't understand why she doesn't get it.

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

I guess a question that could be asked here is: how do you accept payments? Do you find some types of payments to be slower (check in the mail) as opposed to sending email invoices?

I have my business process set up to bill by email, and I find that if they have an easy button to push and pay, I will get my payments quicker.

Tess, I really appreciate your description of how you handle payments. Looks like a really good system.
Most people are prompt enough, but there's one older fellow, who's fairly well-respected in the networking groups - but it seems like he needs to be taken by the throat before he'll cough up. Aggravates me no end.

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Mary H. Ruth/Virtual Writing & Communications
http://www.writingVA.com

Wow: Tess, Tamika, Shauna & Mary: Thank you for the comments all around. I think the bottom line is that my coach has suggested charging retainer fee's to any new clients. The reason being, I have a couple of clients that pay a retainer fee, and getting paid by them has never been an issue. I of course would not want to turn down any hourly work that might come my way, but in my area I am not finding a lot of people if any that are advertising on Craig's List for VA's. I would really like to stick with working for other small business people that want to grow their businesses, and not look to hire someone full-time. I also have to say, I think it's ironic that we all have experienced clients that are firm about getting paid by their clients, but that will dance around paying us on-time for their services. They aren't sowing very good seed that way.
Kailu

Retainer fees are the way to go. Hourly clients you could require a 2-hour deposit before starting work.

Sue

People are late paying there invoices sometimes this happens, I understand but when it becomes a regular occurrence it gets old fast. This is one downside to owning your own business, although I did work at a place once where my paychecks were always late. I left that job in a hurry.

I would send out the reminder notice the day after the invoice was late with a note stating that you will resume services once the account is brought up to date. It is important to set a president and not get sucked into doing things for FREE people will take advantage of your good nature, trust me I have been there.

You try to do the right thing by the client and you get sucked in and before long you have way too much time invested in there business and they owe you money. This is not the position you want to be in.

Good Luck,
Kim