Help with client not paying invoice

9 replies
Hi there,

I wondered if I could get some advice.

I did some work for a client back in December and invoiced them at the end of the month. They should have paid the invoice by the start of January but they still haven't paid me. I have spoken to the client who said he would pay it over a week ago yet this is not the case and now I'm struggling to get hold of him.

I wondered what the best way of moving forward with this would be?

Many thanks
#client #invoice #paying
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  • Profile picture of the author Davet1423
    Give them a "Fair" deadline - tell them you think it's fair then mention your next step is online complaints and then legal action.

    Join Pre-Paid for business - get demand letter sent out free of charge for this very reason - $35/mo

    Used them dozens of times - help me sue a huge directory company in the past.
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  • Profile picture of the author jmosticc22
    I have never actually had to do this but you could always send it to a collection agency.
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    • Profile picture of the author Davet1423
      Bad idea IMO - they selected who they chase, have min amounts and keep a lot of $.
      Send an email to your client "read receipt"
      Call and give a deadline or have someone call for you (better idea)
      Mail invoice with final due amount and time.
      List your next steps in that letter - and start with complaints on their Google My Biz Account that they don't pay their bills- and move forward fast - until they pay.
      Your best best is all online - you try going after anyone in court its a joke (been there done that) - i've had Writs of Garnishment, Access to back accounts and more - its exhausting and not worth the issue unless its over $5k IMO.
      Good luck -
      #Manup you're being played!
      #BeRuthless and be willing to take it as far as needed or just walk away.
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  • Profile picture of the author Oziboomer
    We have a relationship with a debt collection agency and I was ways fearful of contacting or using a service like that, but using someone professional to collect your debts is a real stress reliever.

    The one I use has a great online portal where you have access to plenty of pre-formatted legal documents you can resource when setting up accounts with customers.

    They have a BPAY service and direct debit options with good rates where you can process client payments through those in the first instance.

    If you have a bad debt and in your situation the debt has not really turned bad quite yet as most businesses might pay in 30 - 60 days.

    However, the longer any debt runs the harder it is to collect.

    If the person is not paying and has become unresponsive it is amazing what engaging a professional collection agency can achieve.

    In many instances I can lodge a debt in their online portal and within 48 hours there is usually some payment made and an agreement entered into with the debtor.

    Sure there is the fees associated with collecting those debts but if you have worded your contract with the client correctly those fees can be added to the debt and so you don't really lose any money.

    The situation may be different where you are located but I had experiences where we have collected the additional recovery fees and times when those additional fees have been rejected but in every case I handed to the agency they have collected successfully.

    Once you have a relationship with a company who collects debts professionally you get a much better sense of confidence and I've found in over 50% of the cases the relationship with the debtor is still intact because if they enjoy your service they then understand you don't mess around and in turn they can become far more loyal and far better payers moving forward.

    Best regards,

    Ozi
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  • Profile picture of the author Frank Donovan
    Originally Posted by Elena Base View Post

    Hi there,

    I wondered if I could get some advice.

    I did some work for a client back in December and invoiced them at the end of the month. They should have paid the invoice by the start of January but they still haven't paid me. I have spoken to the client who said he would pay it over a week ago yet this is not the case and now I'm struggling to get hold of him.

    I wondered what the best way of moving forward with this would be?
    Too little info. For example:

    Is the client a corporation or individual?
    Did you have a written contract before beginning the work?
    What are your standard terms of business, and is the client aware of them?
    Approximately how much are you owed?
    Did the client pay any part in advance?
    Do you actually have anything in writing between you and the client, including any correspondence about the outstanding payment?

    Answers to these will help decide your next step, such as hiring legal help.
    .
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  • Profile picture of the author Ngockieu
    I guess he is gone now and you just charged it to experienced.
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  • Profile picture of the author spearce000
    Is this client in the same country as you? If not, you're on a hiding to nothing, I'm afraid.

    If they are in the same country as you, then there are legal procedures you can follow - these will vary depending on where you are, but they usually involve hiring a lawyer. This can be expensive, so it all depends on how much you are owed. Your local better business bureau, trading standards, or similar would be the best people to advise you.
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  • Profile picture of the author ryanbiddulph
    I let them go aka fire them, then more paying clients and customers show up. Power of surrender. Most though are terrified to lose money, so never take this simple approach.
    Signature
    Ryan Biddulph, Blogger, Author, World Traveling Digital Nomad at Blogging From Paradise
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  • Profile picture of the author monicatan1985
    Speak to a debt collection agency (may law firms usually have it)
    Try and crack a deal with them. Something like if they recover the payment, they get to keep 15 to 20% of the recovery. Negotiate hard

    Good luck
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