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I own a small event staffing company and I followed up with a client through email three times about payment and each time he said payment was on the way. I still don't have payment. This is the first time this has happened. I'm wondering what should be my next step?
I would call him tomorrow and explain the seriousness of him not paying, tell him to cancel the check and mail another check. I'm assuming it's been some time, at least a month? Was there a invoice date for payment? You could also tell the client that you will be adding interest to the bill if payment not received by a certain date. I would set a firm deadline, and tell him you will send a collection agency after him or see him in small claims court( I don't know the bill amount...). Follow through and do everything you say. You can't get a reputation for not accepting payment, but obviously you don't want to be a jerk to your client and get a bad reputation that way either.
I own a small event staffing company and I followed up with a client through email three times about payment and each time he said payment was on the way. I still don't have payment. This is the first time this has happened. I'm wondering what should be my next step?
I would send then a registered letter with a copy of the bill marked "past due".
I would call him tomorrow and explain the seriousness of him not paying, tell him to cancel the check and mail another check. I'm assuming it's been some time, at least a month? Was there a invoice date for payment? You could also tell the client that you will be adding interest to the bill if payment not received by a certain date. I would set a firm deadline, and tell him you will send a collection agency after him or see him in small claims court( I don't know the bill amount...). Follow through and do everything you say. You can't get a reputation for not accepting payment, but obviously you don't want to be a jerk to your client and get a bad reputation that way either.
This needs to be in writing at this point.
OP..........do not beg for your money.........you earned it.
I would call and ask to speak to the accounts payable person and find out what is going on. If this is a one person company, you probably should have gotten payment up front. Can you take credit cards? That check might bounce.
If you have a PayPal account, you can email the customer an invoice and they can pay with a credit card.
Also, I don't believe you can retroactively charge interest. I think those terms need to be stated on the invoice.
This is something that really is best thought through BEFORE getting customers. That said, we all learn as we go.
As a general rule:
Have your boilerplate on the back of your invoices or accompanying any online billing
payment received within 10 days of emailed invoice - small discount
payment within 35 days from invoice received - normal
-if not, then invoice re-sent via mail with past due stamped on it
payment received 35 to 65 days - customer gets noted as a slow-pay and max credit reduced - in other words, next time the customer wants service over your credit limit to them, you refuse unless paid in advance. Starting at day 35 a 2% per month interest fee is added. With many of these customers, they will continue as customers but habitually late pay. (Their game -it is stupid, but whatever)
Payment outstanding after 65 days - all service stopped, dunning notices sent. In your boilerplate, you will have already spelled out that the CUSTOMER is responsible for all collection fees and charges, and that you or your agents may repossess any inventory sold to the customer and still be due the cost of recovery. You also put in your boilerplate that you may notify credit reporting agencies and other vendors of the late pay.
Paypal can be a way out in some situations, but let that money sit for a month in case of a chargeback. Remember that as the original debtor, you can call and be annoying a lot more than a collection agency.
Have a buddy who is an attorney? Have him write a letter on his stationery. That typically does the trick.
That being said, ALWAYS have a letter of agreement before initiating a project. And make sure there's a clause where the client will pay all necessary collection fees in event of litigation.
I own a small event staffing company and I followed up with a client through email three times about payment and each time he said payment was on the way. I still don't have payment. This is the first time this has happened. I'm wondering what should be my next step?
If the business is local, stop in with a copy of the bill and ask for a check......if they suggest it is in the mail, will be sent be polite but explain it is seriously past due and you need a check today. Then say nothing.....stand there and no matter what they say, just keep reiterating you need a check today.
If you have the "I'm not leaving without a check today" it will get uncomfortable but I think you will leave with a check or your answer if they had any intentions of paying.
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