Five Tips To Deal With Non-paying Clients

 In Invoices

It is just so unfair to render a service, the service is received with no complaints yet payment becomes an issue. Even though no one hopes to encounter this problem, we are bound to run into them in our day to day activities so it is best to be prepared.

Here are a few tips;

  1. Have a payment policy

Businesses move better if you have a set policy in place before any business transaction commences. These strategies set payment expectations for clients. Some ask for part payment or a deposit at the onset before any service is rendered. This gives the owner a little leverage over the client and it makes payment easier for the client, they just do not realize it. It is easier to make a payment in two parts than to pay it all at once. If a client refuses to pay a deposit, then there is likely to be a problem later on and as such, it is better not to start a business with that client.

  1. Resend bills to clients as a soft reminder

Once a client’s payment is due, resend a copy of the bills to the client as a subtle reminder. It should be clearly labeled as payment past due. Try to be professional about it, even if the client is family or a friend. Send letters or emails not via social media.

  1. Stand Your Ground.

Do not back out of asking for your payment, and don’t apologize for asking either. Nudge a little harder but do it nicely so that you do not come off as rude. Some people are just waiting for the slightest issue to polish up and make you look bad to prospective clients. No-one wants to deal with a rude service provider.

  1. Get legal advice

If the niceness has failed you, accept the inevitable, get legal advice from a lawyer on your next step! Not from social media. However, lawyers will cost you money. So you have to be sure that this money you’re not being paid is worth the hassle. Otherwise, walk away.

  1. Learn from your mistakes.

Just like no two fingers are equal, no two clients are the same. But that’s the beauty of life, it lies in our diversity. If a client has succeeded in not paying you because he/she feels that you are pals, for instance, draw the line. There’s no friendship in business. Have receipts for every transaction, have an official account for payments and make them understand that there’s a fine line between business and pleasure.

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