HOW TO DEAL WITH LATE INVOICES FROM CLIENTS
The bedrock of every business is money. For everyone that goes into business, he or she needs to be paid, now there are some clients who just won’t pay for services or goods rendered, you send them reminders to them but they just ignore you anyway. What is the panacea for such occurrence and how can we keep from offending our clients and also collect our payments as at when due? A few tips would help reduce the incidents of bad debts.
Ask for deposit
A basic way to avoid uncomfortable situations about payment is to demand for an advance fee from the client. One advantage of this is that the client gets committed to the service you are about to offer and is most likely to pay up when the service is over. In this way, you can discern if the client is serious about doing business or not. This way if the client refuses to pay the initial deposit, you can choose to stop work or not start the job at all.
Be Firm
Going into business is no child’s play. A business owner who wants to be successful needs to be astute and a little bit shrewd. It won’t hurt to safeguard your business a bit by demanding that clients sign a contract with you before you commence the job. You may politely explain your experience in the past and tell them it is nothing personal, and also apologize for any inconveniences that would cause.
Do business with only reputable firms.
As eager as firms are to do business and increase their client base, it is essential that this firms are reputable and have a history of paying their dues promptly. Something as simple as asking questions of the local people can save you a lot of heartache and stress. If the prospective client has a bad reputation, it is advisable that you avoid doing business with them.
Speak with close friends and relatives
If it occurs that we have carried out the service and the client is refusing to pay up after sending a series of reminders, the next option would be to get close friends and family members involved. They can assist by persuading the client to pay up. People tend to listen to the advice of family members and may not need any embarrassment from friends. So to save face and avoid further publicity, the client may pay up.
Seek legal action
Finally, if all else have failed and you are still unable to recover the payment, legal action will have to be sought against the client. Many firms are very reluctant to try legal action because of the cost, the time it takes and the eventual outcome of the process. But this is the last call to make a recalcitrant client pay up. Before seeking legal action, you can also threaten the client with the legal action; if there is no positive response, then you can now go ahead to seek legal action against the firm.
