1. Get in contact early

As soon as your invoice is overdue, don’t delay—contact the client so you can iron out any potential issues. It could be something as simple as the client forgetting to pay or mislaying the invoice—or, if it’s a large organization, it could be stuck in the system somewhere. If it’s a long-term client who has previously always paid you on time, it’s most likely a simple but resolvable error has occurred.

Taking action early often resolves most issues and is better than brooding over the late payment, which won’t help your productivity and might even have a negative impact on your mental well-being, especially if you are overly obsessing about it and fretting over all the potential scenarios as to why the invoice hasn’t been paid.  

Take action and take it early!

2. Send a reminder

Send a short, friendly email reminder to your client to prompt them to make payment. With the Invoice Ninja Pro Plan, you can create custom email reminders based on the invoice date or invoice due date. You can set them up so they are sent automatically at the frequency and timing of your choice. You can set “First, Second, Third” or “Endless” reminders to ensure invoices are not overlooked and you get paid faster! A simple reminder will often go a long way to getting the invoice paid.

Invoice Ninja is a leading free invoicing software for small business invoicing, online payments, tracking expenses and billable tasks.

Try it for free here.

3. Speak to someone

If, for whatever reason, you are not getting a response and you know the contact details of the person responsible for paying the invoice (for example, the accounts payable department in a larger organization), then call them on the phone and speak to them. 

If it’s a mobile number and you can’t get through, you can send a text message and ask them to call you back that day. 

Ask them to tell you exactly when you can expect to receive payment. If there is an issue, ask for the details and get them to follow up in writing. At this stage, depending on their response (and your payment terms and conditions), you could consider charging an additional late payment fee (assuming it’s not a genuine mistake)

4. Take note of any red flags (and review payment terms and conditions)

While you should consider potential client red flags before entering a client-freelancer relationship, some don’t reveal themselves until the project has commenced. 

How were communications during the project? What payment terms and conditions did you agree upon, and were these in writing? Were other invoices throughout the project paid on time? What happened at the end of the project – were communications still good, or were you effectively ghosted?

The answers to these questions could provide you with an indicator as to how soon you will be paid or if you need to take further action. For example, it could be that everything was slow throughout the project, and while frustrating, you’ll get paid eventually. 

However, if the client flat-out refuses to pay you, it’s likely time to get professional/legal guidance. But before you do that, it might be worth letting the client know you are going down this route – it might be the push they need.

5. Make it easy for clients to pay you

The more options a client has for paying you, the more convenient it is for them, and the more likely you’ll get paid on time. It could be that the method you offer for getting paid is inconvenient for the client, takes time, or they simply can’t use that payment method due to their jurisdiction or other internal issues.

Invoice Ninja offers multiple payment gateways. Integrating your Invoice Ninja account with a payment gateway allows clients to pay their invoices with 1-click!

The payment gateway processes the transaction in the background; your client never has to leave their Invoice Ninja client-side portal. Seamless!

See all our payment platforms here.

6. Don’t do any further work

Finally, if you are still working on a project (and, for example, getting paid by the milestone), consider ceasing work (and explaining to the client why) until the invoice issue is resolved and you have been paid.

Hiring another freelancer to complete the project would likely cost more in terms of time and effort, so paying you is the cost-effective option.

Of course, each scenario is unique, and if it’s a long-term client who has simply made a genuine mistake, as long as your invoice is paid promptly, there is no need to down tools.

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Whatever route you take, keep communication channels open, remain civil and professional, and do all you can to resolve the situation early on.

Of course, there are many reasons why clients might pay late, but here are some of the most common ones and what you can do about them.

1. They mislaid the original invoice.

It’s not unusual for paperwork to go astray or for a client to genuinely forget to pay an invoice – mistakes happen. Furthermore, it’s for you to remind your client when an invoice, for whatever reason, hasn’t been paid.

What you can do

Good invoice software like Invoice Ninja allows you to create appealing and professional-looking invoices that you can send at the click of a button (reducing the likelihood of it getting ‘lost in the post’), as well as email automated payment reminders. You simply set up the frequency, and your clients will get reminders when it’s time for them to pay.

2. They dispute the invoice.

One of the most common reasons invoices don’t get paid is due to either a discrepancy over the amount due, work completed, or erroneous information on the invoice. You need to identify what the issue is as soon as possible.

What you can do

Always double-check your invoices before you send them out. Using professional invoice templates can help ensure everything that needs to be on the invoice is included.

If your client has a genuine discrepancy, then you need to resolve it before your invoice can be paid. Having a written agreement in place that details your payment terms, fees, and conditions should help iron out any issues at the beginning, and it also acts as a term of reference for both parties for the duration of the project.

3. They have different invoice payment terms and processes than you.

It’s not unusual for larger corporate clients to have different invoice payment terms than you. Some might pay in arrears or on a specific day of the month. They may even have longer net payment terms – even up to 60 days or longer.

What you can do

Ensure you know their payment terms and conditions before you commence. This should be laid out in the written terms of agreement and sorted out during your client onboarding process. Also, ensure you know who (and what department and cost code) is responsible for payment and procurement, as well as the name of the contact in case of a dispute. You should also consider what your late payment policy is – and communicate it clearly.

4. They are unsatisfied with the work.

No freelancer likes to get negative client feedback on their work, but handling feedback effectively is part and parcel of running a freelance business. If they are unsatisfied with the work, and your client proposal and written agreement were specific about providing work to the client’s satisfaction, your invoice will most likely not get paid.

What you can do

Communicate clearly and find out exactly what the problem is – it might be something you can quickly rectify and get your invoice paid. You should also check your written terms of agreement (to see if you allow for revisions of your work if applicable) and see if payment was on completion of work completed to the client’s satisfaction. 

You can help avoid negative feedback concerning your invoice processes by using Invoice Ninja. We offer user-friendly invoice software with some great features. Everything to help you look professional, get paid on time and make a good impression on your clients.

5. They can’t afford to pay.

It might be that your client has cash flow issues themselves, or they could be owed money they need to pay you.

What you can do

In this situation, getting full or partial payment upfront would’ve been advisable. This can be 100% of the invoice or less and is common practice for freelance project work, especially with a new client.

Alternatively, if you can afford to, rather than lose the client (and your money), offer a payment plan so they can pay in installments.

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If you are struggling to get your invoices paid on time, using reliable and client-friendly invoice software can go a long way to reducing some of the most common reasons clients pay late.

With Invoice Ninja, you get lots of helpful features to get you paid on time, in addition to professional-looking invoice templates you can brand and make your own.

Invoice Ninja offers free and paid plans. You can try it for free here.

Let’s make it easy for clients to pay you so you get paid on time!

Here are 6 things to consider when dealing with late payments.

Don’t panic

Easier said than done, but it really does pay (pun intended) to take all emotion out of the situation and look at it objectively. There might be a reason why the invoice has yet to be paid. And it’s not necessarily an indicator of bad faith on the client side either.

Did you create the invoice manually yourself and forget to add the invoice due date? Did it get ‘lost in the post’, or was there no process in place to issue a reminder?

Invoice software like Invoice Ninja offers customized professional invoice templates, automatic payment options and issue reminders. All elements that can help prevent such oversights to help you get paid faster.

Make contact early

A polite reminder can go a long way and might be all you need to resolve the issue.

But if that doesn’t work, you really need to address the issue in a professional manner. It might be that it’s just an oversight, the invoice has been lost, or there’s an issue with the project that needs to be addressed before payment can be made.

An adult conversation, without the emotion, to get to the bottom of the problem and resolve the situation to both parties’ satisfaction is required.

And it needs to be done sooner rather than later.

With Invoice Ninja you can set up notifications for when a client views their invoices, makes a payment or if the client payment didn’t go through – helping you keep on top of things and flagging issues where something isn’t quite right.

Review contract and deliverables

It’s worth reviewing the terms of reference you agreed to when you commenced the client project.

For example, did you clearly stipulate in your contract about payment methods and due dates? It helps to nail these down at the outset to avoid any misunderstandings when it comes to payment down the line.

Another point to look out for is if you agreed on payment due on completion of a deliverable or on the satisfactory completion of a deliverable. i.e., could it be that the client, for whatever reason, is withholding payment as some part of the project has not been delivered to their satisfaction?

This is why you need to have the conversation early to nip payment issues in the bud.

Consider charging interest

It is possible to charge interest on late payment.

How much you charge will depend on your jurisdiction, but having a policy in place (and clearly stating it on all your invoices) can be a great way to mitigate the risk of late payments.

Alternatively, you can just have a straightforward late payment fee.

If a habitual late-payer thinks they will be charged more, they are much less likely to pay late.

Offer a payment plan

Let’s not overlook the obvious here.

In the current fiscal climate, it may be that your client cannot afford to pay the invoice and may have cash flow problems themselves. If you are able to, rather than lose the client (and your money), then consider putting a payment plan in place.

You may have to wait longer for payment of your invoice in full – but at least you will get paid eventually.

Invoice Ninja has a partial payment feature that can simply handle such a scenario.

After your client pays the partial payment, the invoice will automatically update itself with the balance due and set a new final invoice due date.

Get professional advice

In a worst-case scenario, if your invoice is long past its due date, and you are either being ghosted or the client, for whatever reason, refuses to pay, then consider seeking professional legal advice. 

But bear in mind that taking a legal route will almost certainly cost money, time and emotional energy.

Before you take this step, consider sending one last communication to inform the debt defaulter that you intend to take legal action/refer to a debt collection agency – this might spur them into action.

It’s also worth checking your business insurance to see if it covers any legal cover/professional fees.

To summarize

At the end of the day, unfortunately, some clients can turn out to be habitual late payers, and some don’t pay at all.

And while having a contract in place is definitely important, it’s not a magic bullet.

That’s why, in addition to a contract, there are other things you can do to mitigate the risk of late payment.

Invoice software such as Invoice Ninja offers a host of features that can help lessen the risk and keep everything in order.

It’s especially useful for small businesses, solopreneurs and freelancers. 

It’s free and offers affordable pro and enterprise plans.

You can try it for free here.