Late payments can be a real headache for tradies and business owners. Here's how you can handle it and how to avoid non-paying clients.
Late payments can be a real headache for tradies and small business owners. You've done the hard work and delivered a top-notch service, and now you're stuck waiting (and waiting) for your money. It’s frustrating, stressful, and can mess with your cash flow. Worse still, some clients might try to dodge paying altogether.
So, how do you protect yourself from non-paying clients and keep those payments rolling in on time? Here’s a practical guide to handling late payments and ensuring you get paid for the work you do.
The best way to avoid late payments is to prevent them from happening in the first place. Make sure your payment terms are clear and upfront before starting any job. Here’s what you should cover:
Deposit requirements – Asking for a deposit before you begin work helps filter out unreliable clients and ensures commitment.
Payment schedule – If it’s a big job, set up milestone payments to keep cash flowing.
Due dates – Clearly state when payments are expected (e.g., "Payment due within 7 days of invoice date").
Late fees – Mention any penalties for overdue payments to encourage prompt settlement.
Put these details in a written contract and have your client agree to them before work starts.
A lot of late payments happen simply because invoices weren’t sent out on time. Stay on top of your billing by:
Sending invoices as soon as the job is complete.
Using professional invoicing software to track payments and send automated reminders.
Including all necessary details – job description, payment terms, and payment methods.
Make it easy for your clients to pay you by offering multiple payment options, like bank transfers, credit cards, or online payment platforms.
If a client misses a payment deadline, don’t just sit back and hope for the best. Follow up quickly with a polite reminder. Try this approach:
First reminder (due date passed) – A friendly email or SMS saying, "Hey [Client’s Name], just a quick reminder that your invoice [#12345] was due yesterday. Let me know if you’ve already processed it. Thanks!"
Second reminder (one week overdue) – A firmer but still polite follow-up: "Hi [Client’s Name], I noticed your invoice [#12345] is a week overdue. Please arrange payment as soon as possible to avoid late fees. Let me know if you need another copy of the invoice."
Final notice (two weeks overdue) – At this point, let them know you’re considering further action: "Hi [Client’s Name], your invoice [#12345] is now two weeks overdue. If payment isn’t received within 48 hours, we may need to take additional steps to recover the amount."
If a client continues to ignore payment requests, it’s time to escalate the situation. Options include:
Calling the client – A direct phone call can sometimes resolve the issue quicker than emails.
Stopping work – If they owe you money and still expect more work, put everything on hold until they pay.
Hiring a debt collection agency – If all else fails, professional collectors can help recover your money.
Not all clients are good payers. Some show warning signs right from the start, so watch out for:
Clients who refuse to pay a deposit – A reluctance to put money down is a major red flag.
Vague or changing job details – Clients who can’t give a clear brief might be disorganised (or worse, dishonest).
Avoidance of written agreements – If they’re hesitant to sign anything, be cautious.
Bad reviews from other tradies – If other businesses have had payment issues with them, chances are you will too.
One of the best ways to avoid dodgy clients is by using a reputable platform like ServiceSeeking.com.au. We verify customers, allow you to check their ratings, and ensure you’re connecting with people who are serious about hiring tradies.
Finding good-paying clients shouldn’t be a guessing game. By using ServiceSeeking.com.au, you can:
Find pre-screened customers – We help connect you with clients who are actively looking for trades and services.
Track job details and agreements – Keep records of all communication, agreements, and payments in one place.
Reduce risks of non-payment – Our platform allows you to deal with clients who have a history of hiring and paying tradies.
Investing in a plan with ServiceSeeking.com.au means you get access to high-quality leads and can focus on doing what you do best—without worrying about whether you'll get paid.
Late payments and non-paying clients are a frustrating reality, but with the right approach, you can minimise your risks. Set clear payment terms, invoice promptly, follow up consistently, and use a trusted platform like ServiceSeeking.com.au to connect with reliable customers.
Don’t leave your hard-earned money in someone else’s hands—take control of your payments today!
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