Okay, it’s been a month and a half. The invoice still goes unpaid and the emails go unanswered. Time for late fees.
I understand busy people and busy offices. I understand juggling the jobs of three other people that are now piled onto your own. But I do not understand the absence of common business courtesy. If I send an email and you don’t answer, I follow up. If you still don’t answer and that invoice is still sitting there unpaid, I don’t care how large your corporation is or how busy you are – you’re not paying your bill and you’re now getting a late fee.
Even though this is a business I’ve wanted to work with for some time and even though I’d courted them for a while, I’m unlikely to work with them again unless there’s some reassurance that my money, complete with late fee, is forthcoming and soon. Long ago I worked out an invoicing process that includes two late fees before litigation enters into the picture. I don’t care if you’re a large international conglomerate or a sole proprietorship – if you’re late, you’re going to meet the same process and the same end if you don’t pay the bill.
Oh, and the late fees are 25 percent compounded monthly. I think that’s more than fair. I rushed to meet your deadline – you need to show the same professional courtesy. Ignoring my emails and my invoices earns you a mailed copy of the invoice copied to your accounting department.
How do you handle late fees and nonpayment? What has worked for you?
Late, and even worse, non-paying clients make me want to scream. Is there something about freelancing that makes clients think we don’t have bills to pay? Do they not pay their energy bills or phone service providers? I just don’t get it! I’ve used the late fee process too, and sadly, the results aren’t very good. Can’t tell you the number of articles (some involving lots of research) that have been commissioned, then go unpaid. Then there’s the magazine editor/publisher who still owes me for s.e.v.e.n. articles, but went belly up. Arghhhhhh!
Professional business practices, ethical treatment of employees (including contract), and plain ol’ human decency –where have they gone?
They’ve gone down the toilet, as have some of the so-called employers’ ethical standards.
I have one line that works like a charm, Angie – “Please pay within 10 days to avoid litigation.” To this day no one has stiffed me after I use that one. And I fully intend to back it up with action every time I use it, too.
Oh, I've used those and similar lines, all to no avail. (I guess they know some of us po writers can't afford to pay an attorney to sue them, or even to drag them into small claims court!) This is where having a lawyer for a sibling would be nice.
I put a notice in comments about this article, as all writers should read it —
Angie Ledbetter has left a new comment on your post "Strange Growth":
P.S. to the writer folks:
Lori has an important post today about getting ripped off on your work —>
http://loriwidmer.blogspot.com/2008/10/on-being-late.html
I could not agree more, “common” business courtesy has grown far too uncommon!
Late fees – I haven’t been doing that, Lori, but I will from today on. Thanks for that tip.
What would you say about a client who pays the downpayment on a project a month ago, yet still hasn’t sent the project? How annoying.:(
When I have several emails that go ignored, I pick up the phone and call them. Usually they’re very sweet and apologetic and I don’t feel I have to use my angry voice. Then nothing happens for several days and I call them again.
Often they have some silly excuse like “yes, your invoice got flagged because there was an issue with your mailing address.” Notice that it was not an issue with my EMAIL address that would prevent them from responding to my emails or sending an email on their own to get the confusion cleared up.
This has happened several times in the past few months, and I just don’t understand how accounting people think that an invoice should go into a black hole just because they can’t be bothered to look up my mailing address or email me to verify it. I feel your pain, Lori, really I do. Even if our work isn’t drying up, we’re feeling the pinch because accounting is short-staffed and they’re not on top of their invoices.
It always sucks to not get paid on time especially if your bills are starting to pile up.
@Angie: Good thing I have a lawyer in the family. Hehe.