Whose fault when clients pay late?

When clients pay late, do you blink? Do you assume that it’s just part of doing business? Or that it’s the fault of your client?

Is it your fault when clients pay late or not at all?

Sorry to break it to you, but it may be your fault when clients pay late or never pay at all. Some reasons clients fail to pay on time:

  • You never put the contract in writing
  • You failed to meet the contract terms
  • You haven’t got confirmation of the client’s receipt of your project delivery
  • You didn’t send a formal invoice
  • Your contract doesn’t penalize late payment
  • Your contract doesn’t go over payment terms
  • You forgot to include your name, address and contact details on the invoice
  • You haven’t sent a statement of account
  • You haven’t followed up by email
  • You haven’t followed up by phone
  • You haven’t followed up by registered mail
  • You haven’t applied in small claims court
  • In the case of a liquidation or bankruptcy, you haven’t applied to become a creditor

Obviously, you should start at the top of that list and work your way down. But, above all else, make sure you get contracts in writing. Although a verbal contract may be binding — depending on where you live — it’s harder to prove after the fact. If you need help putting together a contract or an invoice, I recommend US Legal Forms