Things To Do Immediately If Clients Won't Pay Their Bills

Things To Do Immediately If Clients Won't Pay Their Bills

Daniel Hall 24/01/2023
Things To Do Immediately If Clients Won't Pay Their Bills

If you're a business owner, it's important to know how to handle clients who don't pay their bills.

It's that simple. If your client won't pay their invoice on time, it can be a huge headache. This article has compiled this list of ways to handle the situation so that it doesn't become an issue in the future:

Ask Yourself if the Client has a Legitimate Complaint

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Ask yourself if the client has a legitimate complaint. If so, try to find a solution. For example, perhaps the problem was due to an error on your part and you should offer compensation for that mistake. Don't be afraid of admitting fault if you made a mistake; it will only help build trust with your clients in the long run.

If the client does not have legitimate complaints, then it may be time for you and them to part ways as soon as possible. You can't let yourself get bogged down by someone who is ungrateful or difficult to work with—especially when there are so many other people out there who will happily pay their bills on time!

Use Direct Debit to collect payments

Direct Debit is the best way to collect payments online. It is also the name of the system by which a person who owes another money can arrange for their bank account to be debited automatically. The advantage of this method is that it's much more convenient for both parties involved, as it means you don't need to keep checking up on them, and also doesn't require any paperwork or admin work on your part.

However, there are also some disadvantages. If there's an error with the direct debit system, it could cause problems with your client's payment being processed correctly or even at all. If this happens then they may not be able to pay their bills on time while they wait for the issue to be resolved, which could mean penalties from the company they have debts with (such as utility companies) or even worse consequences if they don't get paid at all.

Do Not Involve Other Clients in the Collections Process

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First and foremost, don't involve other clients in the collections process. This is a problem that can arise when you're dealing with a client who has multiple projects on your plate—and one of them is behind on payments.

It's tempting to treat this instance like all the others, but it's important to realize that if you do so, you might be doing more harm than good for both parties involved. If this client knows that you're trying to collect from another client, it'll only make him or her even more likely not to pay up. However much he or she owes you now, it will seem like an even bigger deal if your entire business is suddenly at risk because of his failure to pay what he owes.

The same goes for using threats or intimidation tactics on any of your clients; they just won't work here either. In fact, threatening someone who doesn't want anything else from you (like paying off debt) could cause things to go south quickly. This means you could end up losing valuable relationships with clients who otherwise would have gladly paid their bills in full as soon as possible because they value honest communication between themselves and the businesses they work with regularly.

For similar reasons mentioned above with regards to being honest about which projects are late versus which ones aren't yet complete; try not using the same collection agency for multiple clients either since doing so would raise red flags right away signifying something wasn't right here...

Be Prompt

The first thing you should do when a client doesn’t pay their bill is contacting them. Don't wait for them to contact you first, don't wait for them to apologize, and definitely don't wait for them to come up with a solution. It's your job as the business owner or manager to advocate for yourself and your company. If one of your clients doesn’t pay their bill, be proactive and get on the phone with them immediately—don’t wait around hoping that they'll come up with some sort of resolution in the meantime before taking action yourself.

Make your Expectations Clear from the Beginning

One of the things that can lead to a problem with clients not paying their bills is not making your expectations clear from the very beginning. Before you take on any new client, make sure you are both on the same page about what will be done and how much it will cost. This conversation should also include your payment policy, any milestone payments you expect along the way as work progresses and what happens if they decide to end their relationship with you before all their tasks are completed.

Asking these questions may seem premature or like a waste of time for something as simple as building a website or designing some marketing materials for an event — but if you don't ask these questions up front, then when the bill comes due months later, there's no way to know who's responsible for paying it (and definitely no guarantee that anyone will).

Never Underestimate the Power of Articulating What is Wrong and Why it's Wrong

If a client is slow to pay their bills, it's important that you don't ignore the issue. This will only make the situation worse, and if your client doesn't remember what they owe you, they may even continue taking on new clients without paying their existing ones.

If a client has stopped paying you for work, it's important that you do not write off the money as lost forever. It's better to try and get back what is owed from them than ignore it; otherwise, they are likely to take advantage of other people in similar situations in future.

Conclusion

These are all things that can help you get paid faster and better. If you want to succeed as a freelancer, it’s important to learn how to get clients to pay their bills quickly.

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

 

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