Getting paid for the service, you have completed, or products sold can sometimes be a daunting task. To completely avoid this kind of situation in your business, you would have to ask for payment upfront or before you execute the service. Be that as it may, there are some ways you can handle a client that won’t pay.
The following tips will help you in your efforts towards getting payment from your clients.
Send a Reminder
Sometimes, clients may honestly forget to make a payment. Give them the benefit of the doubt; maybe they don’t remember they owe you money or they could no longer find the invoice. For clients in this category, a warm reminder will solve the problem. Send them the invoice again and add a small note that payment is due. If they honestly forgot, then, they will take out their chequebooks or credit cards and make the payment without delay.
Make it Harder for Clients to Pay Late
Some clients are terrible when it comes to getting paid. These clients do eventually pay, but they take their time doing so. The best way you can help yourself out is by identifying such clients and making it harder for them not to pay on time. To do this, you need to set up a payment schedule with milestones. Once you have completed a milestone, get the payment before moving on with the project. Most of these clients want their projects to be completed on time. Therefore, they will pay faster because they want you to move to the next milestone quickly.
Send a certified letter
If you don’t get any payment after contacting the client, you may need to write a demand letter and send it to the client. The letter will further help you prove your case if you take legal action in the long run. Therefore, ensure you make copies of the letter before you send it. With that, you will have proof that you attempted to collect your money.
Go to Arbitration
After you have tried all within your capacity but the client still refuses to pay, you can take the client to arbitration. Note that this is easy to achieve if you already have an arbitration clause in your contract. This clause can be created either for voluntary or mandatory arbitration.
Take Your Client to Court
Never be afraid of taking your client to court although legal action should be the last step. You should do this after you have tried all available options without getting any result. Don’t waste any time in taking legal action against your client because the longer a debt has not been paid, the harder it is to collect it.
Use a Debt Collection Agency
The good news is that there are successful debt collection agencies that can help you get your debt without hassle. They will recover the debt quickly while still ensuring that you maintain a good relationship with your client.
Boston Commercial Services are a specialist debt collection agency in Sydney and Melbourne, with representatives working across Brisbane and regional Australia, we can help you get your cash-flow back on track.
Plan from the Beginning
There are certain cases that you can avoid if you have a good payment plan from the beginning of your contract with your client. Set a payment plan that involves milestone, send a reminder, send a demand letter; all these will inevitably boost your chances of getting your money faster. If they all fail; then let the specialists at Boston Commercial Services help you.