Tried a 1% daily late fee on my $1200 invoice and got paid in 3 days

I had a regular customer in Phoenix who kept pushing payments past 60 days on a $1200 web design project. After months of polite reminders I added a 1% daily late fee to the next invoice and emailed them a clear breakdown. They paid in full within 3 business days... no questions asked. The trick was I spelled out the fee right on the invoice in bold red text. I worried it would scare them off but it actually sped things up. Has anyone else tried a daily penalty instead of a flat late fee?

4 comments

4 Comments

charlie1987d ago

That’s genius. Did the same thing. Got paid in 2 days flat.

kai8397d ago

Hold up, is everyone just scared of a little red text? I get that a 1% daily fee adds up fast, but are these customers really that spooked by a bold line on an invoice? Seems like if they had a good reason to be late, they'd just call your bluff or argue the fee. I had a client once who said "just take me to court" over a late charge, and I didn't have the time or money for that. Maybe it works for small amounts, but on a bigger bill I bet they'd push back instead of paying quick.

joseph487d ago

Phoenix is actually pretty good about quick payment once you scare them a little. @charlie198 your two-day turnaround is impressive, I only got three. The red bold text definitely does the heavy lifting.

abbyhall7d ago

Wait, only 2 days?! @charlie198 how did you actually pull that off, I need those secrets lol. My first time doing the bold text I still had to wait a week before they finally cut the check.