What To Do When Your Client Won't Pay.
4 CRUCIAL steps to take when your client/customer just won’t pay ⠀
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Have you found yourself in one of these frustrating situations? ⠀
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Scenario 1: You’ve found your ideal client. You love them & they love you. Everything is great. ⠀
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Except then they go MIA after your first meeting. They have payments due to you, plus now they also have all your workbooks, templates, and guides. ⠀
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Scenario 2: You’re almost done completing a project for a customer but they want proof of concept before you finish. You send them your weeks worth of hard work and then never hear from them again. ⠀
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Scenario 3: One of your clients is taking a very long time to pay you. They’ve given you every excuse in the book - and it’s been weeks - even months - since their deadline for payment. ⠀
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Most business owners have likely encountered this scenario at least once, if not a handful of times. Here’s some steps to take if you find yourself feeling stuck:⠀
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Check your contract and/or terms & conditions. (*Hopefully you’re working with these already!) Your contract should include detailed information about the project/service, form of payment, and even late fees for late payments. 📑⠀
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Send out a reminder. If you’ve imposed late fees within the agreement, then you can remind your client/customer that they will incur a late fee if the invoice is not paid by [X] date. ⠀
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Try other ways of contact. Use social media to try and get a hold of your client (note: this does NOT mean you put them on blast). You’ll want to do all you can to contact them to show you made a reasonable effort to reach them. ⠀
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Still nothing? Try an attorney-written demand letter. This is a strongly written letter than usually includes a hint to, or a threat of, a lawsuit based on breach of contract. A letter with an attorney’s letterhead usually scares a client into paying. ⠀⠀
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In need of an attorney-drafted demand letter? Check out my template shop! https://www.ttiemanlaw.com/taylors-template-shop/demand-letter
*Disclaimer* This post is strictly for general informational purposes only and is not intended to constitute legal advice.