Receiving payment for your work, and getting paid on time, is fundamental to a successful business. Lapsed payments can cause cash-flow issues, halt business growth, impact business operations and potentially damage customer relationships.
If a client is running late with a payment, what are your options?
If you’ve invoiced for work and the payment date you’ve specified has been and gone, you’re in a position to chase the client.
Initially, this could be a simple phone call or an email whereby you restate the terms of your contract, inform them you’d appreciate their cooperation before the situation escalates and that you need to receive payment before you release any completed work to them, for example.
If a simple reminder doesn’t work, you could notify your client of a final deadline for payment. Inform them that failure to pay by this date may result in legal action being taken.
It’s important to be clear and keep your client notified of the steps you’re taking. A written and signed letter means both parties will have a written record of any action being taken, which could serve as evidence if legal action is pursued.
If all else fails, initiating a debt recovery process can help you recover the money and compensation that’s owed to you. This often results in one of two actions being taken; either going through a small claims court or involving a debt collection agency.
Chasing late payments can be an awkward, difficult and long-winded process. With the correct processes and steps in place, late payments within your business can be dealt with professionally and swiftly.
For any advice, please send me a message or get in touch:
www.jonathankeable.com | 01752 220 377 | firstname.lastname@example.org