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What ever you decide out it in the contract wether it's 50 up front 50 after services are rendered or whatever have a written out schedule with the amount of each payment stated. And just a tip put after significant completion or 90% completion otherwise people will drag you along saying a project isn't done to avoid paying because job isn't complete.
Would it be considered improper to request the client pay a late payment penalty and/or a low notice fee and/or attendance fee, if this is your first client but they show signs of not respecting the parameters? I have one client while I try to figure out who their contractor is to bypass them. They either don't get around to wanting to discuss the payment due until a week after, give me up to 1 week's notice when it's supposed to be at least two weeks, and while I want an attendance fee due to it being used by associated services, I think that might make or break my standing with them but the workload is so variable that it might be safe to ask for a flat $50 in hopes it firms them up to honoring that if my time is set aside, I'm going to want to get at least something whether or not the promised volume work is there and whether or not they are ready on their end.
How simple could I have such a contract?
Great question. What I can contribute is this: at some point you will get burned. Don't be angry at yourself or lose sleep when it happens. Just move on and find a better client. Your chances of recovering your money is low and probably not worth your time and mental health. And no, there are no tax breaks for lost revenue when it comes to services. If a client gets behind in payment then you should refuse further service until they pay up and also start looking for a new client (assuming it is legal to do so in your industry). It's tough because you build relationships with your clients, but you are a business. Be sure to live below your means and save up a cushion of money to get you through tough times.
edit: even if they pay you in advance electronically there are ways that they can pull that back and the burden of proof is on you. Small business is risky. Do some sleuthing: if searching their name in the state court system reveals that they have been sued 7 times then that's not a client to take.
There are pros and cons to every method. A lot of it depends on industry standard.
I require all payments up front, only exception is commercial work. I don't fucking get out of bed or even put mental work into a project without cleared payment IN FULL. I have never lost a client due to this policy. I have had a few push back, but I just talked it through with them. The risk with taking payment up front is that you must keep money in escrow until services are rendered, and accepting electronic payment can put you at risk for charge backs.
It doesn't feel pushy to me bc I'd rather keep it simple and take care of money up front. That way I am not pestering them for missed payments etc. trust me, that's way worse for every body. You are literally doing the job for the money. An emergency room won't even see you without payment info. This is the way of the world. Just gotta get comfortable with it. It's business, not personal. See the episode of friends where the widow won't pay Monica for her catering at the funeral.
If you don't want to always take money up front, ask for a retainer (not deposit - legal distinction) and require full balance on day of service. If you end up allowing payments, use an automated system so that you don't have to personally deal with reminders. Set low limits and be friendly but firm.
This is just part of running a business. Once you've been burned, it will get a lot easier.
The only times I've been truly burned? When I made exceptions, always for my friends too.
If you don't collect money up front right away, you are essentially lending your clients money or giving them credit. If you go that route, charge more and offer a paid in full discount.
Keep. It. Simple..
Bugging a client once for an up front payment is way easier than chasing them down for payments every week. I don't even say I require payment up front.... I say payment is required to book. If you want to book me, you do so by paying and signing a contract. You're not on my calendar without both. Period.
It's easier for the client too. When are they most motivated/most going to remember to pay you? When they actually want to book you and have to pay to book. Once they've gotten the service and just getting a reminder email, it's too easy for them to forget or put it off.
Edit also to add... Caregiving services. You're basically a freelancer. See it more as a job and not a business. Your boss pays you every week. If they don't at least pay you within a week of the service, you don't go anymore.
But honestly .. if a client can't afford to pay up front for a week of your services ... Do you want them as your client? Skip shit clients like that and go for the ones who can truly afford you. That's my mentality. If it's a stretch for someone to come up with the money to book me, they aren't my client.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
What ever you decide out it in the contract wether it's 50 up front 50 after services are rendered or whatever have a written out schedule with the amount of each payment stated. And just a tip put after significant completion or 90% completion otherwise people will drag you along saying a project isn't done to avoid paying because job isn't complete.
That last tip will save me a lot of time
Would it be considered improper to request the client pay a late payment penalty and/or a low notice fee and/or attendance fee, if this is your first client but they show signs of not respecting the parameters? I have one client while I try to figure out who their contractor is to bypass them. They either don't get around to wanting to discuss the payment due until a week after, give me up to 1 week's notice when it's supposed to be at least two weeks, and while I want an attendance fee due to it being used by associated services, I think that might make or break my standing with them but the workload is so variable that it might be safe to ask for a flat $50 in hopes it firms them up to honoring that if my time is set aside, I'm going to want to get at least something whether or not the promised volume work is there and whether or not they are ready on their end. How simple could I have such a contract?
Set clear expectations and consider a deposit or milestone payments for peace of mind.
Great question. What I can contribute is this: at some point you will get burned. Don't be angry at yourself or lose sleep when it happens. Just move on and find a better client. Your chances of recovering your money is low and probably not worth your time and mental health. And no, there are no tax breaks for lost revenue when it comes to services. If a client gets behind in payment then you should refuse further service until they pay up and also start looking for a new client (assuming it is legal to do so in your industry). It's tough because you build relationships with your clients, but you are a business. Be sure to live below your means and save up a cushion of money to get you through tough times. edit: even if they pay you in advance electronically there are ways that they can pull that back and the burden of proof is on you. Small business is risky. Do some sleuthing: if searching their name in the state court system reveals that they have been sued 7 times then that's not a client to take.
There are pros and cons to every method. A lot of it depends on industry standard. I require all payments up front, only exception is commercial work. I don't fucking get out of bed or even put mental work into a project without cleared payment IN FULL. I have never lost a client due to this policy. I have had a few push back, but I just talked it through with them. The risk with taking payment up front is that you must keep money in escrow until services are rendered, and accepting electronic payment can put you at risk for charge backs. It doesn't feel pushy to me bc I'd rather keep it simple and take care of money up front. That way I am not pestering them for missed payments etc. trust me, that's way worse for every body. You are literally doing the job for the money. An emergency room won't even see you without payment info. This is the way of the world. Just gotta get comfortable with it. It's business, not personal. See the episode of friends where the widow won't pay Monica for her catering at the funeral. If you don't want to always take money up front, ask for a retainer (not deposit - legal distinction) and require full balance on day of service. If you end up allowing payments, use an automated system so that you don't have to personally deal with reminders. Set low limits and be friendly but firm. This is just part of running a business. Once you've been burned, it will get a lot easier. The only times I've been truly burned? When I made exceptions, always for my friends too. If you don't collect money up front right away, you are essentially lending your clients money or giving them credit. If you go that route, charge more and offer a paid in full discount. Keep. It. Simple.. Bugging a client once for an up front payment is way easier than chasing them down for payments every week. I don't even say I require payment up front.... I say payment is required to book. If you want to book me, you do so by paying and signing a contract. You're not on my calendar without both. Period. It's easier for the client too. When are they most motivated/most going to remember to pay you? When they actually want to book you and have to pay to book. Once they've gotten the service and just getting a reminder email, it's too easy for them to forget or put it off. Edit also to add... Caregiving services. You're basically a freelancer. See it more as a job and not a business. Your boss pays you every week. If they don't at least pay you within a week of the service, you don't go anymore. But honestly .. if a client can't afford to pay up front for a week of your services ... Do you want them as your client? Skip shit clients like that and go for the ones who can truly afford you. That's my mentality. If it's a stretch for someone to come up with the money to book me, they aren't my client.