I require new clients to give a retainer, then I invoice against that. From then on, I invoice every two weeks. If payment is ever more than a week late, I stop all work. At 30 days, I file suit. This information is written into the contract that the client signs. I explain the payment terms with the client before they sign the contract. I also have copyright information in the contract. They don't get ownership or source code until the end of the contract and payment has been made in full. This gives me extra leverage through copyright laws.


>I have this client that I've been working with for about 6 months, now. Up to about 2 months ago he was paying his invoices per our agreement.
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>Originally, I would invoice him once a week (net 14) until he mentioned to me that it would be better to invoice him when he's actually ready to pay the invoice. I'd just had to check a few days in advance with him. At first I felt a little unconfortable asking if it was okay to invoice him for the past 4 weeks of work. Once I got past that I was okay with it....
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>In the past couple of month we ran a little behind on the dead lines (for several reason - some hardware issues, some security and rights issues - however he decided to pay on a time and materials basis) and threaten to shut down the project if we didn't finish soon.
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>Working, researching and trying my darness I tried to overcome some hurdles I encountered along the way we finally completed the project. Come time to invoice (so that I can pay bills at home) he informs us that he's out of money but that it's important that we continue to work and launch the project to generate income to pay us.
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>After a month of putting off payment to us I decided to give him the ultimatum - pay or I'm finding other work. Giving him a total of 3 days to come up with payment in full he suddenly found some money. However, with the notification that he can now pay me he also sends an email explaining that demands are not "fruitful" when it comes to business and that I should be more understanding when it comes to money issues.
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>Was it wrong to give him the ultimatum or was in the right to do this? I have to admit to being a better programmer than a business man but I felt that if he was gonna go under and/or "burn" us I'd make the debt be as little as possible on my part. Any advice for the future when dealing with him.