Feeling Tricked by Delinquent Clients? Use These Tricks to Get Paid.

Posted by Ryan Howard on Oct 19, 2018 8:04:00 AM

B2B Accounting Tricks to Getting Paid

It's the season of trickery and nothing can be more frightening than low cash flow. Have you been feeling "tricked" by delinquent clients? While initial meetings and calls may have gone smoothly, the client hasn't followed up on their end of the bargain? As frustrating as that can be, it's time to buck up with a few tricks of your own.

Instead of feeling tricked by delinquent clients, use these tricks to get paid on time.

 

Take Charge

The first step in solving any challenge is to recognize how you could have contributed to the cause. It's easy to take non-payment or even non-responsiveness personally. Shake it off and take charge instead. What can you do to make sure your clients know what to pay and when?

  • Set boundaries - You're only going to feel more resentful if you haven't set clear boundaries with your client to begin with. 

  • Get it in writing - Always get a signed agreement that defines what work you will do and how much your client will pay for it. 

  • Be clear on consequences - Let your client know what they can expect if payment isn't received on time such as penalties, late fees, or work stoppage.

  • Follow up - If they haven't paid, do they know that they owe you money?

Remind Clients to Pay

Ask Questions

Don't make assumptions about why your client is paying late or not at all. Ask questions instead. If you've established a good relationship, they may feel they're able to be completely honest with you. Maybe your client is also having cash flow challenges. They may have misunderstood the service you provided or weren't aware that the service was performed. They may have misplaced the invoice or were unsure when payment was due. You know what they say about assuming? Getting clarification may also get you paid.

Define How to Pay

Sometimes client payments are late because they weren't aware how to pay. For instance, have you clearly defined what the invoice was for, who to pay and when? Invoices should be sent out on a regular basis and include at least the following:

  • Your business name
  • Your contact information
  • Description of the services
  • Rate
  • Total
  • Payment options
  • Due date
  • Payment terms

See Also: How to Set Prices and Invoice Like a Boss

 
Make Paying Easier

Would automatic payments help your clients to pay on time? If you're able to set up a monthly retainer and can make it easier for your customers to pay automatically, you could lessen the risk of another late payment. Discounts for early payments or paying half up front is another way to encourage clients to pay on time. Offering many different payment options could also help clients to make payments quickly.

Too many unpaid invoices may mean there's an opportunity to be better at accounts receivable. Maybe your credit policy needs help. Perhaps you're too busy to deal with old accounts that were never resolved. An option to consider to help relieve the burden from you, and make paying easier for your clients, is accounts receivable clean up. An A/R professional respectfully contacts clients on your behalf to make payment arrangements and collect what's owed to you. 

Don't let delinquent accounts trick you into feeling bad. Take charge with a few tricks of your own.

At Enterprise Recovery, we offer A/R clean up, bad debt collection and legal review to help our clients recover payments. Contact us to see how we can help!

Collect More Cash With A/R Clean Up

Topics: Best Practices, Business relationships, Commercial Debt Collection