If you provide a stable hosting solution that keeps your customers happy they will generally pay on time anyway.

We operate a policy where by they have 2 days after the invoice due date to pay or their service gets suspended. 1 Week after due date a 5% charge gets added to their invoice. 1 Month after due date we arrange collection of funds.

We have never had any complaints about our policies and people always pay on time. I think sometimes you need to show clients that you do mean business. This also attracts a lot more business clients that are willing to pay more money and clients that expect an outstanding service.

Hope this helps