About the Author: Kris Broda

Krzysztof Broda Landscape resized 1 e1602958114836
As the co-founder of brodmin, Kris has more than 10 years’ experience in Trust, Fiduciary and Corporate services industry. He worked at UBS as Senior Compliance Associate and shortly moved to assist HSBC with a new project as KYC Analyst. Follow him on @realbrodmin and LinkedIn

8 Comments

  1. Avatar of Aurora
    Aurora 16/01/2021 at 19:07 - Reply

    Late payment interest should be included in every contract, all over the world. It just keeps things clear and holds people accountable. Most people I know talk about adding interest but are too afraid of the repercussions.. I probably couldn’t have done this when I first started out, but I got to a point where I can select my clients and work with those that appreciate my work and pay on time plus agree with my contract requirements.

    • Krzysztof Broda Landscape resized 1 e1602958114836
      Kris Broda 17/01/2021 at 10:15 - Reply

      @Aurora, thanks for your comment. I too had the same fear at first adding any kind of fee to my invoices. For years I never even considered it as I was certain I would sour my relationship with the client and I couldn’t afford to lose any of them.

      If legislation in the UK would be enforced better, the late payment culture would change. If other countries would do the same that could really improve the SME marketplace.

      Glad to hear you work with clients that pay on time. If they don’t, you know what to do… : )

    • Avatar of Tina
      Tina 19/01/2021 at 23:09 - Reply

      Yeah, as a new business it is very difficult to do something like this because there’s always the risk of losing clients. But, I do understand where you’re coming from and I also want to get to a point where I can work with whomever I want and decline clients that are not in flow with me. I know it will take me some time to get there but it’s a goal that motivates me.

      • Krzysztof Broda Landscape resized 1 e1602958114836
        Kris Broda 20/01/2021 at 11:10 - Reply

        Hi Tina,

        Some of us are braver than others when it comes to charging interest or fees. If we could get rid of the late payment culture altogether then there would be no need to worry about losing our hard earned clients over late payments. Keep us updated on how you get on.

      • Avatar of Aurora
        Aurora 21/01/2021 at 21:40 - Reply

        I know it’s hard at first but try to include interest as soon as you can. Don’t postpone just because you assume you will lose clients. Offer more than what a client has ordered and also demand more of them. Raise standards all around. The clients who accept this (some will even praise you) are the ones you want to work with.

  2. Avatar of Bernard
    Bernard 22/01/2021 at 18:25 - Reply

    Here’s how I go about it:

    If the due date is almost there, I let them know 1 day prior to it, with an email. If it has been 3 days after the due date, I email or phone them (usually both, one after the other) letting them know that I have started charging interest. In 80% of the case this email/call makes people issue the payment within 3 days.

    • Krzysztof Broda Landscape resized 1 e1602958114836
      Kris Broda 27/01/2021 at 19:03 - Reply

      Great process Bernard. Can I ask what system you are using? Are you using automated invoicing software or are you setting reminders in your calendar?

    • Avatar of Tim
      Tim 30/01/2021 at 11:37 - Reply

      I try to give them a bit more time. I won’t charge interest up until it has been 10 days after their due date. But, I do charge a mean interest and my clients know this. If you are late, you have to pay :)

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