Here’s Your Action Plan When A Client Doesn’t Pay Up
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Here’s Your Action Plan When A Client Doesn’t Pay Up

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The success and growth of a business or a company is greatly measured by how much revenue it makes and whether if it has a stable cash flow. If you run a business of your own or manage a company, you would understand the importance of each payment being received. When your clients pay you on time, the salaries get released on due dates and all the expenses get covered. This process ensures a smooth increase in productivity among the employees. Any hindrance in this process can lead to negative outcomes for your firm.

When one more or clients of yours delay the payments for no reason, it becomes an extremely difficult task to manage your expenses and to do financial planning application. Many small business owners and freelancers don’t know much about what to do when clients adapt this attitude.

This article will get you a better insight on dealing with such clients.

  1. Don’t jump to conclusions too fast

When a client doesn’t respond you right away after you have submitted your work, it doesn’t mean he is ghosting you. It is possible that your client has gone to a vacation or is occupied with something hence, has been unable to reply you. Accusing your client of not paying you can lead to bad terms and not getting any job in the future.

In any case, you must wait for a few days or weeks for your client to respond. Once your client has paid, ask him to pay faster next time and you’re good.

  1. Resend invoices and bills

The first step is to resend invoices and bills as soon as you realize that your client is not responding to your messages and emails. If you have an invoice software with you, this can be done easily.

This can be a better step rather than writing rude messages to your clients.

  1. Contact Via Social Media

When your client is not responding on the channel you two have been in contact with, now is the time to choose a different channel. Social media can be a better option where you can easily reach out to your client and inquire them about payment status.

Most companies can be found on Facebook, Twitter, LinkedIn, and other social media platforms. So, if your client is a company or a firm, that is an easy case for you.

Checkout this also

7 Reasons Social Media is Becoming the Backbone of Any Business

  1. Send an attorney’s letter

When the payment date has been extended for a limited times, you can send an attorney letter which will definitely get your client to contact you at the earliest.

  1. Refer to Small Claims Court

There is a small claims court which deals with such cases. The issue will surely be resolved if you take the case to small claims court but there are charges to get a case filed. So, you need to weigh in your options. If the payment amount is less than the charges to start the case, dismiss this option and move forward.

What to do when the client pays you in the end?

If your client pays you in the end, ignore the case and have the lesson learned. Send away new terms of payments to all your clients to avoid any such case in the future. Also, get yourself a retail pos system for better inventory management.

 

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