Late payments suck. They mess with your cash flow, throw off your plans, and generally make life harder than it needs to be. But here’s the good news—they don’t have to be the end of the world. There are ways to prevent them (or at least handle them without pulling your hair out). So let’s walk through exactly what you can do to stop chasing payments and get paid on time.
Step 1: Build Late Fees Into Your Contracts
Listen—if you’re not already charging late fees, this is your sign to start. Whether you’re a social media manager, designer, or run any kind of creative service business, you need a contract that clearly states what happens when payments are late. That means including late fees—usually a percentage of the invoice total—for every day or week the payment is overdue.
Now, you can offer a small grace period if you’re feeling generous (we all know life happens). But remember—you don’t have to be lenient. Your time and work are valuable, and it’s your call whether you want to enforce those terms strictly or cut your client some slack.
Step 2: Don’t Start Work Without Payment Upfront
This is a big one, and I see too many business owners skip it. Rule #1: Don’t start a project without some form of payment. Whether it’s a deposit or the first month in advance, you need to protect yourself from getting ghosted after the work is done.
Here’s how I run things:
- Clients pay me on the 1st of every month via autopay.
- If their payment doesn’t go through, they get a late fee, and no work gets done until the money hits my account.
Why? Because I’ve seen way too many people finish a project and then sit around waiting for payment that never comes. Don’t let that happen to you. Protect your time and energy by making sure the money is in your hands before you start working.
Step 3: Use Autopay Whenever Possible
Autopay is your best friend. If you can set it up, do it. So many service providers I work with use autopay for their clients, and it’s a total game-changer. Not only does it ensure consistent cash flow, but it also eliminates the awkward back-and-forth of chasing payments.
Here’s how it works: You and your client agree to automatic payments on a set date each month (like the 1st or 15th). They just need to make sure the money is in their account, and boom—you’re paid on time, every time. No fuss, no follow-ups.
What if You Can’t Do Autopay?
Now, I get it—not every business has recurring revenue that fits into a neat autopay schedule. If that’s the case for you, the solution is simple: Always require a deposit. At the very least, getting partial payment upfront protects you from doing work without pay. It also shows that your client is serious about working with you and has some skin in the game.
The Bottom Line
Late payments don’t have to be a nightmare—but they will be if you don’t take steps to protect yourself. With late fees, payment upfront, and autopay, you can keep your cash flow healthy and your stress levels low. Your business shouldn’t run on IOUs or crossed fingers.
If you’re ready to stop chasing payments and want help getting your books organized, I’m here for you. Let’s clean up your systems so you’re always on top of your finances—without the stress of wondering when you’ll get paid.
Need Help Getting Paid on Time? Let’s Talk.
Late payments messing with your cash flow? I’ve got your back. I’ll help you set up the right systems to make sure you’re getting paid on time, every time—no more chasing invoices or waiting around for payments.
Click here to book a free discovery call and let’s chat about how I can get your finances in shape, protect your time, and keep your business running smoothly.
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