late payments are killing my cash flow but i feel like i have no leverage, what actually works
i run a small services business and the timing gap between when i deliver work and when I actually get paid is getting harder to manage. Most of my clients are decent people but payment terms are different things for different people. net 30 for some means day 28, for others it means day 45 or whenever they remember
I’ve tried upfront deposits which helped somewhat but not everyone agrees to them, especially new clients who don’t know me yet. I have late payment fees in the contract, but I feel like if I enforce them, it will do more damage to the relationship than the late payment itself.
Really interested to hear what systems or approaches small business owners here have put in place around these that actually reduced late payments without creating friction with clients