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Had a chat with my accountant about late invoices last Tuesday
She told me that adding a 2% weekly late fee actually gets people to pay faster, not just annoy them. Has anyone else tried this and did you see a real difference?
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sean485d ago
whats wild is i actually saw the opposite effect with a client who did this. they added 1% weekly and people started paying late on purpose lol. turns out some folks treat it like a convenience fee - theyd rather pay the extra $20 than deal with the headache of remembering to pay on time. the psychology is weird, some people just hate deadlines more than they hate losing money. your accountant might be right for certain client types but i saw it backfire bad with a bunch of small contractors who just factored the fee into their budget.
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craig.olivia5d ago
Whoa @sean48, is that like when I pay my kids in extra screen time just to avoid negotiating bedtime?
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