Establish a solid contract
A contract for most businesses may not be legally binding. For some it is a formality but a written document that was signed or agreed upon by two parties is good enough to secure a provider that he or she will be getting the payments based on the scope of the contract. Be sure to formulate a solid contract. Highlight the points. One reason some clients hate contracts is that they are very extensive. Make sure that all necessary points are clearly defined in the text. This is a way to seal the deal more than just verbal agreements and handshakes.
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Send a polite reminder
If the person or company is not able to pay immediately within the due date that you have settled before, kindly remind them by sending a letter, an email of their billing or by calling them, setting a reminded. Always be professional and courteous. Though you did your job, and the customer is the one who is not doing their end of the deal, it is necessary to be professional. Do not raise your voice, and do not make any comments. Always stick to your contract. If they do not reply send at least two letters and the last one is the final reminder and you will start doing the other strategies.
Extensions
It pays to be a nice and patient person and sometimes, there is a valid reason why they will be delayed. They might have an issue with the bank or the payment channels will be delayed due to maintenance. If that is the case, our strategy two was ideal. You remind them first and then on the second one, you make a final reminder/warning. Always ask the client that if there are any issues or problems, they should notify them as soon as possible so you can make the best executive decision. It is important to be open when issues like these happen.
Putting some interest/penalties
Let’s face it; some clients really are not good. They do not pay the money that you deserved to get in the first place. After the second warning, penalty fees are applied up to a certain amount of time. Of course, you do not want to lengthen this up so you might want to give them a period of time but within that period, interests need to be paid as well for the delay.
Legalities
There are some businesses who end up suing a company or individual for nonpayment. It is possible since they breached the contract and did not meet the scope of their signed contract. Be sure that you have proof of the job that you did and the contract that you both agreed upon. Be sure that you have necessary documents. Sometimes, when it comes to legalities, there are situations that we have to give up especially when the company was bankrupt.
One of the best advice is that you get a deposit for the work and this is a security that when you finish the job, they will pay.
