What to do about late payments?

[i-shoot]

How do you handle a client that is taking several months to pay up? I have 2 invoices from Dec. 2006 that have not been paid. I don't want to loose the client because they keep me busy, but I am going to run into interest charges for traveling cost ect. Any suggestions?

[BluesCam]

I just had the same problem. I wound up calling the accounting dept. explaining that my agreement with their company was basically COD.
They said they would send the check out right away. I'm sure they won't pay the interest I added on my last "overdue" invoice.

[dhart]

Quick accounting lesson. Invoices are normally due 30 days after the client recieves them. So at most your invoice is 60 days past due. Not good, but not the end of the world either.

Don't confront the people you work with. Chances are they are helpless to get you paid. On the other hand, it may have just gotten lost on the way to accounts payable.

Call and ask for accounts payable. Politely inquiry about your invoice. At this point you'll know what your really up against. They might say it's news to them. Offer to FAX or email your invoice to the person your talking with and do it within minutes. Get that person's name. Or they might say, "You're scheduled to be paid in X days". Say something like "I've been waiting a while for my money, can I count on you to personally make sure this happens?" Now you have made it personal. Write the date down. Wait a couple days after the payment is due and if you haven't receive payment, call back the person and findout what's going on. Again do it politely. Repeat shampoo and rise once more.

Last resort (and I've used this to great effect) Show up at the office, politely ask to speak to the person you've been dealing with over the phone. Be polite, but firm "I've stopped by to pick up a check for my past due invoices." If they give you the run around say, "I'm going to wait here in the lobby until I get my money." Sit down. Don't get excited, don't raise your voice, don't make a scene. People you work with might happen by and ask what you are up to. Say in a normal voice "I'm waiting for my money owed me for the jobs we worked on last..." Usually doesn't take long for a check to materialize.

Last last resort (and I assuming you have now concuded you have tired of working for this client for free) turn it over to a collection agency. You won't get much of your money, but at least they can devote full time to hounding these deadbeats.

I used to have a partner that would get all bent out of space about over due invoices. I have found my "polite" system works much better. Usually it's just a problem with the paperwork.

Most important thing if the client is a real deadbeat. Once you have collected your money, or not, do not work with them again.

[Run&Gun]

To everyone who talks about adding interest to past due invoices, good luck. Yeah it sucks not getting paid for 45-60 days(the norm for one of my biggest clients), but trying a stunt like that isn't worth it. A) you won't get it(the interest), and B) that's a quick way to loose a client, especially the big guys who have 100 people waiting to take your spot on the call list.

If it's a one off deal or someone who only calls once a year or someone you don't really like working for, but you take their money anyway, go for it, but if you want to keep 'em happy, don't try a stupid stunt like cahrging interest.

[Cameradude]

A good reason for not doing half days.

A two hour shoot and a full day rate will make a late check a lot more tolerable.