Not all clients are the same. In every business, the possibility of coming across an unethical client is probable which means that you have to be pre emptive and cautious about them. Whether you are a manufacturing company or a service provider, you are spending time and money to ensure customer satisfaction. So delivering a product or service and not getting remuneration for it can be very frustrating.
In case the payment never arrives, don’t lose your patience since there are numerous methods and ways with the help of which you can easily reap your financial rewards. Gathered here are seven easy techniques that work against those clients who refuse to pay for no reason at all. Remember to see to it that they don’t have a valid reason for not paying, otherwise start using these techniques to receive your payment.
Pre emptive, proactive and follow a protocol
Whether you are a sole trader or run a small company with some employees it never hurts to have clearly defined processes and protocols to deal with late payments. Think about different situations in which the client refuses to pay and what you will do for it. So you must have a protocol chalked out before hand should a client refuse to pay. Being prepared also saves you from unnecessary frustration and disappointment as you will know what to do and what steps to take.
Get in touch with the client
It is imperative that you contact the client as soon as the deadline for payment passes. Avoid using methods of contact that require time to get answer like fax or email. Use a telephone to get in touch with them or meet them personally. This is effective since they have to think on their feet instead of giving them the option of sending you a well thought out answer on email.
There are a few things that you should ask them when you meet them or call them up. These include;
1) Were there any problems or issues with the product or service that you provided?
2) Ask them why is it that you haven’t been paid and whether there was a problem on the client’s end that was making it hard for them to pay you.
3) Try to ask for a date on which you will be paid. If they are not able to give you one right away, politely tell them that you will call them again the next day or after lunch so that they can think about it.
Terms and conditions
Determine the manner in which you want to receive your payments, whether you want to work with your clients on milestones, retainers or deposits since it is your call. Remember, some clients don’t like to pay a certain percentage upfront well before the work is done. But it is common sense to ask for some payment beforehand. Getting a deposit is most commonly done in business since it ensures strong commitment from both parties. With this payment the client shows that he is serious about the work whereas you receive it to indicate that you will be doing the job for them.
Keep sending in regular reminders
Sending reminders at regular intervals is always helpful. Clients need to be made aware that they owe you money. It is a fairly common business practice to let the client know that they need to pay you. Reminders also keep them in the loop about the payment that they owe you.
Vet your clients
It is understandable that you should scrutinize your clients. Businesses usually know the reputation of a client and work accordingly with them. If a bad client is coming your way it is best that you avoid them.
Never be rude
There are certain things that you should never do when asking for your payments. If it is your first call then remember that there can be many valid reasons for why your client has not paid yet. Therefore be polite and professional and don’t be a bully about it. Clients sometimes get confused about payments and once reminded usually pay off the due amount.
Let the client know before it’s too late
Don’t delay asking the clients as they are busy and sometimes are completely innocent when it comes to due payments. They have other people to pay as well. If you only give them a quick friendly reminder, they will be able to respond as soon as possible. However if you don’t notify them or are late yourself, they can further stall the payment saying that they are done making other payments with that money and will require more time to pay off yours.
