So, I was totalling up my invoice:check ratio and came up with a deficit of about $6,500. This is bad because I have bills to pay. In a way, I guess it’s also good because it means there’s a good deal of money out there just waiting to be given to me.
As a result of the deficit, I have to give my biggest client an ultimatim involving penalties for paying late. This is a slight issue, since I don’t want to rock the boat, so to speak. What do I do?
My current idea involves increases in my hourly rate on new invoices when I have any outstanding invoices more than a month old. I’m hoping that’s incentive enough. Any comments are appreciated. Thanks.
i would say that maybe one reason he is your biggest client is because you havne’t said anything about paying late. you have a job to do and he is employing you to do it, he needs to pay you for your services. i mean if you forced everyone to pay you in full on time, how much would that make up if you lost a client? i dunno
Comment by shmatty — May 9, 2005 @ 10:44 am
Definately approach this guy about it. Ask him if there’s a more efficeient way of invoicing him. This guy could be busy upon receiving your invoice and adds it to one of many piles on his desk.
I also suggest having an emergency fund saved such as this. Who knows, you might be unable to work for weeks or months on end and having having and need the use of this emergency savings.
Have a nice day
Comment by Moe — May 9, 2005 @ 9:48 pm
The idea of an emergency fund is stupendous. Unfortunately you have to be getting paid for a while to build an emergency fund. I’ve been paid for about 1/5 of my actual invoices since January.
Comment by nate — May 9, 2005 @ 9:58 pm
Payment late 1 month = service suspension.
Payment penalties work for bigger, faceless
companies with contracts and reconciliation
departments, but for contract work it’s better
to just say you’re busy with paying customers
when he’s in arrears. It’s also nice to have
an SLA when you start a project… something
like “50% now, and 50% after I kill her.”
Comment by The Dude — May 13, 2005 @ 1:24 am
Definitely talk to him and ask him what his plan
.
is for paying you. Surely he realizes you’re not
independently wealthy, or doesn’t he?
You probably need to recieve 50% right off the bat.
He knows you’re dependable; I’m not seeing that
he is
Comment by Mum — May 13, 2005 @ 3:21 pm
I can’t really ask for 50% up front because I don’t know how much work I’ll be doing or which client I’ll be doing it for. I don’t know if I have the guts to tell him I can’t work for him until he’s paid up either. Guess I’ll have to work on that.
Comment by nate — May 13, 2005 @ 4:56 pm