I don't think extortion is a great move. That sounds like something I would avoid in even the worst circumstances.
I tend to use psychology with late paying clients. I say things that affront their ego about not being able to pay. Things like "looks like you're short on cash, business not going so well?", or jabs about their accounting department. Also I harass them about the invoice the first day its overdue, and everyone I have contact with is CC'ed especially the CEO if I have contact with them. I'm the nicest guy to work with, but when it comes to payment I'm a real asshole, and I let them know it.
A lot of times late payments are simply the accountants managing debt by putting freelancers, who typically don't charge interest or have collections mechanisms, on the backburner in favor of paying off vendors or lenders with steep interest rates. Introducing late payment fees, and reminders of those fees tends to expedite the payment in that case
I tend to use psychology with late paying clients. I say things that affront their ego about not being able to pay. Things like "looks like you're short on cash, business not going so well?", or jabs about their accounting department. Also I harass them about the invoice the first day its overdue, and everyone I have contact with is CC'ed especially the CEO if I have contact with them. I'm the nicest guy to work with, but when it comes to payment I'm a real asshole, and I let them know it.
A lot of times late payments are simply the accountants managing debt by putting freelancers, who typically don't charge interest or have collections mechanisms, on the backburner in favor of paying off vendors or lenders with steep interest rates. Introducing late payment fees, and reminders of those fees tends to expedite the payment in that case