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Late fee?


Bob K

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I searched the group for this topic, but couldn't find any discussion.  I've been a freelance location soundman for a long time, and don't recall if I've ever charged for a late payment.

I recently did a corporate shoot for a production company in another state.  They flew in four people and shot with an Arri Amira and a Sony FX3 (I sent two wireless channels to each).  At the end of the day I got a text from the producer saying "Thanks for your help today!  Great job!"

But, now their invoice (30 days) is overdue.  Should I add a late fee?  And, how much? 

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Not right off the bat.  Be polite, but definitely do follow up.

 

I've had a late fee listed on my invoice for years ("overdue invoices will be charged 5% per month").  But I've never actually charged it, even on late invoices.  It's there for truly egregious cases, and I've never had any that were truly egregious.

 

My preferred way to approach this is to send them an e-mail that assumes they've already sent payment on time and that the cheque has been lost in the mail.  This gives them a graceful way of owning up to the fact that they haven't paid yet, and also makes the point that payment is late and expected.

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DGS has it right, in my view. But I do outline a late fee in my Deal Memo that I have new clients sign ahead of the job. 

 

Some companies, mostly cable news organizations, pay net 60. I let them get away with it because we have a relationship.

 

Deal memos are essential for new clients so terms, expectations and scope of the project are outlined, understood and signed off on.

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For a freelancer, a late fee is a nuclear option, just short of threats of small-claims court.   To most people, especially honest ones, it will seem like an attack.  I found it better to be a little patient and try phone calls and emails in which you leave them an opening to apologize and pay up, even if maybe they were really intending to "age" your invoice some?   It's good to make them understand that you are paying attention to your outstanding invoices and that you mean to get paid in good time, but it's also good to start out with politeness and not threats of penalties.

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Hopefully this isn't the proverbial check-in-the-mail as I'm sure we have all encountered at some point or the other.

 

I agree with the above that this is a last line of defense. When do we ever refer to the contract that was signed or the T&C agreed to? When all other resources and efforts have been exhausted...

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1 hour ago, Bob K said:

Thanks for the responses.  Update: Late yesterday I received an email from my client saying he's sorry, out of town, busy, and "didn't have my checks with me."  But he assures my check will be in the mail as of today.

 

Not having your checkbook is quite a poor excuse, a dead holdover from the '80s.

 

These days, any person or business can pay through their phone. The bank writes the check, pays the postage, and you don't even need to find a mailbox, all for free! As treasurer of small a non-profit org, I often receive a text or email invoice and pay it immediately while on a lunch break or from my hotel room in the evening. My non-profit company checks are always in my pocket... 

 

A speedy payment is essential for any business.

 

Cheers,

Tim

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Checks? Seriously, they could pay using ACH, or Zelle. Even Venmo.

 

Regarding late fees; I have sent an invoice with this added in the past, which usually resulted in prompt payment (although minus the fee). But this was after I sent emails reminders first.
 

Probably best to feel it out on a case by case basis. If it’s someone who has given you a lot of work for years vs someone who hired you once and disappeared….

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