What To Do If a Client Isn’t Paying On Time

Posted October 10, 2017

Chasing payments from clients is something that none of us want to do, but unfortunately most will have to deal with this at some point during our working lives. When someone isn’t paying for your services when they should be, it can be frustrating and hard to deal with, so check out our tips on how to deal with clients that aren’t paying on time.

Call Daily

Yes, it’s tiresome, but one of the quickest ways to obtain a payment from a client is to keep calling them up to remind them of the money that they owe you. While there is no excuse, sometimes people can forget when they need to make payments, so a quick phone call can help. Be sure to leave voicemails if they don’t pick up and avoid chasing payments via email, as they are so much easier to ignore.

Offer Options With Payments

Often you’ll find that people aren’t paying because they possess a bad character and want to deprive you of what is rightly yours, but because their company is going through some issues and paying in full may not be feasible for them right now. Try and be understanding and offer them options, such as payment plans where they can give back a certain amount each month.

If it has gone too far and you feel that the issue is out of your hands, often it’s necessary to involve a lawyer or attorney who will be able to send them a letter detailing what they owe you and what the legal implications are of refusing to do so.

Enlist The Help Of A Collections Company (if it’s worth it)

Collection companies can help you obtain money that you are owed, but it will cost you, so you need to work out if it’s worth it before you resort to this step. Ask them how much of a percentage cut they will take and what you’ll be left with at the end. If the money seems insignificant and not worth the hassle, don’t bother.

Setup A Process To Protect Your Receivables

This is important and will help you avoid running into trouble. Ensure that your process is clear and can be carried out easily every time that you run into trouble. For example, if a payment hasn’t been made within 30 days, send a courtesy letter. After 60 days issue harder worded letters detailing penalties they may face if they don’t pay up.

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