When you do business with a client, you expect to be paid for your product or services within stipulated time. But what happens when those payments are late – or don’t come at all? Sometimes, no matter what you do to prevent the issue, even then you’re still left empty-handed and you feels like being cheated. There are a few questions those come up often in our mind and we went looking for a definitive answer for those questions. With so many tasks on the plate as a business owner, it can be easy to lose track of a customer invoice.
You should have a system that allows you to monitor the status of your invoices, such as a spreadsheet, a software, or an app. You should also send reminders to your customers before and after the due date, using polite and professional language. You can use email, phone, or text messages, depending on your preference and your customer’s communication style. The first step to avoid late payments is to set clear and realistic payment terms with your customers. This means specifying the due date, the payment methods, the interest rate for late payments, and the consequences of 소액결제 미납. You should also communicate these terms clearly in your contracts, invoices, and reminders.
Reflect on how you might improve your customer service to prevent future non-payment. After all, a great customer experience is the best way to receive payments from clients and streamline your collections process. No one wants to pay a late fee, and having these charges in place upfront can help deter customers from paying their invoices late.
Once the service provider has taken the time to complete the work given and deliver it, that’s when flaky clients start giving excuses for delay in payment. The unfortunate part of this sad truth is that, more than often, one will be dealing with clients who refuse to pay for the services once all the work has been completed. It can feel downright depressing when somebody works hard to deliver an outstanding product or a service, and then that person gets burned.
Offering payment methods like ACH, credit cards, and virtual cards can make payment easier for your clients, leading to faster collections. It’s likely the non-paying customer is withholding funds owing to their own cash flow issues, as opposed to any legitimate issues with the service or product you delivered. Perhaps the client is awaiting payment on their own invoices, triggering a snowball effect that prompts their accounts payable (AP) team to stall on outgoing expenses. Taking a proactive approach means reaching out to your customer before your payment is late and sending before-due payment reminders. As explored, before-due payment reminders can also be sent via text. Based on findings in The 2022 late payments report about how businesses are effectively reducing late payments and the negative impacts on their business, the following recommendations are suggested.
If, on the other hand, your client has filed for bankruptcy, you might be able to file a claim with the bankruptcy court for what you’re owed. If your client has any money for claims, you can file a proof of claim and potentially get paid some (or sometimes all) of the money you’re owed. If your client has gone out of business or vanished from the face of the earth, taking any additional action will likely just waste your time.