Since credit card companies and other business do it, is it ok to charge a client a late fee if they late with your payment. This has been happening to me recently, especially with client (this is the 2nd straight year they have done this). I think it is a good idea because it shows them you are serious and like any other business, but the negative part is that unlike the credit card industry our business is built on relationship and by charging late fees you might lose the client. Any ideas or thoughts on this? I am going to start asking for me check either at my show or days before I perform.

If a client repeatedly won't pay you on time, why would you want to continue to do business with them (unless you are being paid on a 30 day invoice for a large company which can and will frequently happen)?

I have always had pretty good luck stating in my contract kindly yet firmly I wish to be paid before I go on. With exceptions (see parenthesis above) this has never been a problem.

Remember - YOU can choose to work with a client just as they can choose (or not choose) you.

Keith

The client is a University, so is standard that they have the 30 day invoice.

I always charge late fees. I charge £25 pound per days they are late that soon gets there attention.

Criss

A couple of ideas.

1) Charge 10% more and offer a 10% discount for payment on the day.
2) Send them a bill with a late fee attached saying "This fee will be waived in payment is received within seven days"

It is typical for a large organization like a university to take 30 days to pay you. In fact, they often will not pay until the services are delivered.

One way is to require a 50% deposit with the signed contract, but offer a 2-5% discount if the pay in full when they return the contract. It actually makes it easier for the university to cut just one check, and they may have rules that require the business office to pay early to take advantage of vendor discounts. That will work some of the time, but not all the time.

Some business offices are adament about not paying until after the services are delivered. In that case offer a Net 10 day, 2% discount, and Net 20 days, 1% discount, Net 30, full payment due. You will often get paid within the ten days.

At any rate, to get paid sooner you have to get someone to physically move your invoice through the system faster. I know some performers tack on a late charge for anthing over 30 days, but the few dollars a 1.5% late charge doesn't seem worth it to me.

Jim

I would not charge a late fee in this case because the client(University)is not likely to go away soon. I would give the person in charge of the booking a friendly phone call in which I would ask if they enjoyed the performance and what kind of feedback he has received and then somewhere towards the end of the conversation I would tell him that I had not been paid yet and ask him if he could look into it for me.
A late charge will just make the client angry and a repeat booking will be so much harder to get.
Since you know the clients paying habbits for the future just include 5% extra in next years fee so you cover the "interest".