How to Deal with Late Payments from Clients

You know the feeling - you’ve worked hard on a project for a client, and you’re waiting for that paycheck to come in. But as the days turn into weeks, you start to wonder: when am I going to get paid? Dealing with late payments is a frustrating reality for many freelancers. Despite the terms and conditions outlined in your contract, some clients are notorious for dragging their feet when it comes to paying their bills. Read on for tips and strategies for dealing with late payments, so you can get the money you’re owed and keep your business running smoothly.

How to Deal with Late Payments from Clients

First, Follow Up

Nine times out of ten, your invoice is buried in someone’s inbox or stuck in an approval process. So reach out to your billing contact and ask about the status and timing of your payment. If you’re not getting anywhere with the accounting department, check in with your day-to-day contact and see if they can figure out what’s going on. Sometimes a simple nudge is all it takes to get your client to pay their bill.

Check Your Contract

If you’ve been following up with your client’s accounting team and your day-to-day contact and you’re not getting anywhere, check your contract for any clauses related to late payment (this will usually be in a Payment Terms section). It may outline steps such as assessing late fees or pausing work. Depending on your relationship with your client (and what you want it to look like going forward), consider a gentle reminder that late fees will apply or that you’ll need to put the project on hold if payment hasn’t been received by a certain date.

Put Everything in Writing

If the client has gone silent and weeks are turning into months, keep following up in writing and include all the details - the original invoice date and amount, due date, any all prior communication about the late payment. If the payment is significantly past due and the client is unresponsive, your written records will be helpful if you decide to consider taking legal action such as taking your client to small claims court or involving a collection agency.

Manage Your Mindset

Dealing with late payments can be time-consuming and stressful, and if you have a good relationship with your client, you might feel bad about “bugging” them for payment (I’ve been there!). Remember that you’re not “just” a freelancer - you’re a small business owner. And being proactive about dealing with late payments is critical to protecting and growing your business.

Get Ahead of It

Dealing with clients who aren’t paying their invoices on time is beyond stressful. So next time, try to set yourself up for success from the beginning. In your contract, set clear payment expectations - that might include payment plans, whether you accept credit cards (and who is responsible for fees), what happens in the event of an unpaid invoice, etc. And once that contract has been signed, make sure you’re sending invoices in a timely manner - I always put invoicing and payment dates on my calendar so I don’t miss a thing!