trouble is once you agree they will keep trying this, and to offer a 3 month break to a client whos only been with your 8-9 month is something i would never do.
A client would have had to be with me a min. 2 yrs and paid ontime every month to ever be considered for a payment break.

i have offered to reduce payments for a client for 3 months, but never offered or agreed to any full payment breaks.

do you think if you give a client a 3 month payment break would your server provider give you the same

Giving those 3 months away has brought in more than 2 years worth of payments and 2 referred clients that are also still with us as well.

Sometimes you just have to go with your gut feeling I guess.

I've had situations where someone just ran into a bit of difficulty and needed a little more time. Something happened to me only once in my 16 years of having a domain where something was wrong with the bank or something else, I don't recall exactly. But because my web host was patient with me it was eventually resolved. Had they deleted my account after 30 days they would have lost 10 years of business from me, so this is something to consider.

Personally, I give a grace period of 15 days for the payment to be made, after 30 days the account is suspended and if still unpaid after 45 days it is terminated. However, if the account has not had a record of late payments, these thresholds are overlooked and I will not suspend the account. In a case where a person has a record of late payments then these rules will hold true. I think it's wise to work with each account individually and not make a sweeping choice that affects good people who have simply come upon temporary hard times.

We send the first invoice 14 days before and then we give to the client 1 day after the due date, then the service get suspended, after 4 more days the VPS will be terminated.