New client - late payments - wwyd?

[LMW1990]

I have recently returned to freelancing - relevant because I am still trying to build my client base and turning down work is something I would rather not do. But I also can't work for free...

I have a new client. As with all new clients, my payment terms are strictly 7 days and I have clients agree to this prior to me starting work.

So far I have invoiced this client 3 times for relatively small amounts. All 3 invoices are overdue.

I have politely chased and request payroll contact details. On Tuesday I was told a payment would be made. Then on Wednesday it couldn't be paid Tuesday as they could not print my invoices (but they could view them on a screen so I'm unsure what difference that made) and asked me to provide it to them in a different format, which I did. Then yesterday I was told Payroll had left early (this was at 3pm) so they didn't know the status of the payment. This morning they stated that payment was made yesterday - so it stands to reason that the payment must have been made prior to 15:30 if they left early?

I have just chased the remittance to be told that NO payment has been made. Payroll are behind. So why the blatant lies?

Since the first 3 invoices, I have undertaken a larger batch of files, in good faith, for them which are due back to them today and due to be invoiced today. They also asked me this morning to take on more files!

I have emailed to say this is not acceptable. The money must be in my account today. So far no response.

I'm at a loss what do I do? Do I continue to work on the files due back today (minimal work left to do) or do I hold them effectively hostage until they make at least one payment to me?

I understand this comes with the freelancer territory but it's the lies that have made me most angry. I cannot afford to work for hours and hours for free.

Hi @NoSquirrels I have but so far nothing has been volunteered. The only communication since Monday has been about work they may require later this week. I do keep asking in my responses. As I have other clients, and like to keep my invoices consistent with regards to terms, I was more wondering about how to word the late payment/ interest portion. I'll await their response in payments runs and processing and add that bit in later.

I noticed upthread that you mentioned this company are in the ROI. Other people's experience may differ, but I personally was shocked by the laissez-faire attitude to 'pay by' dates when I was working in Ireland and issuing invoices. It's an entirely different culture, where invoices are seen more as a hint than a demand. I'm sure this doesn't apply to all businesses in Ireland, but it was my experience. You need to make a Big Thing about being paid by X date, so they know it's an actual requirement, as opposed to a suggestion :)

Now waiting for shedloads of people to tell me how wrong I am, and racist, too - but honestly, it's what I experienced - my boss went massively overdrawn/into debt whilst waiting for payment on 3 year + old invoices - and still didn't cop on to the concept of payment by the due date!

They’re not sounding great to work for - I think I’d be trying to limit my exposure to them or up my prices for them as a client, as whilst the late fee thing is fine in principle, in practice it can be difficult and frustrating to enforce.

Someone will give you better wording than me on the late payments stuff I am sure.

Have you signed any sort of agreement with them by which you agree to their T&Cs? Sometimes it's just a clause within the NDA document.

It's good that you've finally got paid but I don't think they'll ever pay you in seven days. If you really want that, you might have to find clients who agree to that from the beginning.

I'm freelance and can't afford to work for clients like this.

I charge a late fee and interest, I normally find that the threat of County Court (there are sample letters online) prompts payment.

I've never had to pursue as far as County Court, but I absolutely would if I had to because I can't stand clients that mess around small businesses. It's hard enough for us out there as it is. It's theivery as far as I'm concerned.

But Ive not had to deal with this kind of thing for a long time because I don't accept repeat work from clients like that. I also weigh up who I will do work for.

I'd rather not have the business of non-payers, it's just too stressful to deal with. You only need a few non-payers, and your business can crash. It's just not worth it.

Meant to say the late payment/interest wording is all online too, just type what you're looking for into search engine 'how to word...' etc and you'll find it.

So, I sent in my latest invoice with new terms attached yesterday and... they paid it today!

@LMW1990
That's fab!

@bagpiss - I think I'm still in shock!!

@LMW1990 Hopefully they will keep it up and not slack off in future.

Firstly Payroll pay wages not invoices ( but then I am nitpicking )
Companies rarely pay on anything less than 30 days from month end , 60 days it getting more common , plus a lot of companies are late payers on top of this .
You need terms and conditions which you must get signed , and do a credit check on everyone you plan to do work for . never be scared to turn work away because the company looks financially unsound .
You are correct that if the company is in ROI its much more difficult to enforce payment , personally I steer clear of ROI companies because of this .
If you are holding onto something of theirs that they value / need , do not do any more work or release the items until you get paid
You can only charge interest on invoices if you have made it clear on their invoices and terms and conditions that this is the penalty for late payment ( this should be in the terms and conditions as well )

Tbf once your bank details are set up and you've been through the internal approval system once it probably is easier and quicker!

They also now know you will down tools