How to Handle Late Payments for Post-Production Work

Unfortunately, late payments are common in the world of business. This is mostly intentional, but often it is simply a misunderstanding or a result of disorganization. When working in post-production as a freelancer, it may be a matter of survival to collect payments due on a timely basis.

Difficulty: Moderately Challenging

Instructions

1. Place clauses in the invoices or in the contract before work has even begun that clearly state the late payment policies after 30 days of invoicing. Standard late payments are 10 percent, sometimes 15 percent, or a flat amount such as 10 dollars. Go over this with the client so there are no surprises.

2. Arrange multiple payment options for clients. If the client can pay by check, credit card or electronically, there will be no room for excuses such as a lost check in the mail.

3. Get to know the financial people at the company. Staying in touch with the right people will help keep lines of communication open. You will have a much better chance of getting paid by the accountant than the sales person.

4. Invest in software that does automated billing. This will send the client regular reminders of how much is owed and when it is owed. It will bug the client to pay on an impersonal basis.

5. Take advantage of an escrow service. Some are offered online. This requires the client to make regular payments instead of paying one large bill after work is completed. Stop providing work for them if they default on any payments. This will give them incentive to keep paying.

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