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Chasing Payment

If you’re a small or medium company, chasing payment from clients can be an incredibly frustrating job to do, but unfortunately it has to be done.

Most of the time clients pay on time or within the dedicated time frame, some clients will have specific payment terms which could be up to 9o days to pay their invoice. So how do you deal with a client who is a slow payer?

First things first, it’s worth checking the credit worthiness of a client and make sure you discuss payment and terms before you enter into a contract with them to provide work, you may even request upfront payment or a deposit for the work.

Send out invoices on a regular basis and  be prompt, keep in contact with the client. Usual invoice payments range from 10 to 30 days, if however the time period exceeds 30 days, you are actually in your rights to charge interest. It is always sensible to contact the payee, if they are having financial problems you can offer them to pay in installments. Get your spouse, secretary, or someone else to ring the client and act as the “accounts receivable department”.

It is difficult and can get very frustrating, at the the end of the day if the owed payment is under a certain amount you can take your client to small claims court, you don’t have to pay for an attorney, and can still sue through this court.

Lastly, what not to do: Try not to go around bad mouthing this client, yes it is frustrating but at the end of the day, you will end up with egg on your face if you mouth off about what a bad client they are and how much money they owed you. Be professional, and represent the kind of business you hope your clients think your are, smart and courteous.


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