For example, say, “Hello, this is Charlie with Willie Wonka’s Chocolate Factory. I’m calling to let you know that your bill of $100 USD was due May 29th. " Be persistent. If you can’t get ahold of a client, contact them every day.
For example, if your client’s office is located near you, stop by and talk to them in person. If you did work for a company, you can leave messages with the senior executives.
For instance, send the invoice through email and through the mail. Then, call the client to leave a message. Some contractors forget to send their invoices when the work is done. Since this can lead to payment issues, make sure you send it right away.
For example, tell the client, “I noticed you missed a payment. Is there a problem with my work?”
For instance, say, “I’m sorry you are having a hard time. I know the economy is tough. Let’s come up with a solution that will work for both of us. ” Be kind and empathize with the client so you avoid turning them into an enemy.
For example, a client may threaten you with a negative review on social media. Say, “I can’t stop you, but you are still legally obligated to pay your bill. ”
For example, you might say, “I can put your account on hold this month until you’re ready to pay. ” You can say, “Let’s start a payment plan. How does $50 at the beginning of the month sound?” While you would prefer to have the money right away, remember that getting paid eventually is better than not getting paid at all.
For instance, ask, “Which parts of my work are you unsatisfied with?” You might explain to them why the work was done that way or make minor adjustments to it. Remember the scope of your work. If you gave the client what they asked for, you are not obligated to do more.
For example, you might say, “When you signed up, you agreed to pay the full amount after the 30-day trial period elapsed. ”
For example, you may include in an email, “I reserve the right to contact a lawyer in cases of breach of contract and payments more than 90 days late. ” Research payment laws in your area so you know exactly what legal actions you are allowed to take. Contacting a business attorney is a good idea. In most cases, it will only cost about $100 to have an attorney write and send a demand letter to your client.
Search online for information on various factoring companies, including reviews from other customers. Read the details about factoring services. You may be able to get up to 75% of your total invoice.
Read the service details before agreeing to use a collection agency. Agencies charge fees for their services. Agency fees can be as high as 30% of the money recovered, so consider if this cost is worth it. You may also wish to try offering your client a discount as large as the agency fee. With any luck, you can entice them to pay without resorting to legal action.
Most times, filing a complaint in small claims court is a good idea. You can recover up to $10,000 in most locations. In small claims court, you do not need to have a lawyer. As long as you have documentation of your work and your client’s agreement, such as a contract, you may win your case. For disputes involving large amounts of money, getting a lawyer is often worthwhile.
Sometimes you may not be able to find any information, especially if you are dealing with an individual instead of a business. If you don’t trust the client, you are often better off turning them down and moving on to other clients.
Stay in touch with the client so you always know their concerns and can communicate any changes in the project’s status.
For instance, a contractor working on a home may ask the client to pay half the cost up front, then half when the work is done. If a client doesn’t pay for a stage of the work, you have the option to stop working on the project.
For example, you may issue a payment reminder when the bill is 30 days late and a second warning with an implicit legal threat after 60 days.
For example, you might agree to charge a $30 fee for every month that a payment is late. Be sure to include any late fee agreements in your contract for legal purposes.
