Client Invoicing - Explained.

Dealing with Late Payers.

One of the biggest reasons companies go bust, is the fact that they are not paid on time, this can have a devastating effect on any business, with cash flow being reliant on incoming monies, to cover overheads, wages, bills and other expenses.

One of the best attitudes to adopt is "Up front" payments, and if you don't get paid, you don't do the work, of course this is not always an option, so where possible take the biggest deposit you can (say 50%) and also have in place a pre-drafted contract, where should the client NOT pay, they are liable for late payment fees, you can find these on the internet, ensure that they understand the terms, you may want to charge an additional 20-40% for late payments, and usually under these contracts, the client has 7 days to pay in full upon completion of the job.

I know this is a sensitive subject but it is worth covering yourself BEFORE you get stung.

Thanks for reading.