On the whole most of our clients pay very in full on time but there are a couple of our clients that are always very very slow to pay. The amount we are collecting sometimes is so small it almost doesnt seem worth it but we continue with our rigorous collection processes out of principle. It is such a waste of time continuing to chase invoiceses and emails but I suppose it is just part of the game.
does anyone else have any issues with customers/clients in collecting revenues? if so what methods do you use to get the illusive payments?
7 Tips to Make Sure You Get Paid by Clients there are some tips to get your paid 7 Tips to Make Sure You Get Paid by Clients | Men with Pens
We used to routinely invoice, but the hassle of chasing what are pretty low amounts, and additional costs of engaging a third party to chase up bad debts made invoicing more trouble than it was worth. For us, worst offenders seemed to be small businesses  You knew big companies would have to go through the accounts dept, and you would wait 30/60 days, but you would get paid. Small businesses used to come out with all sorts of excuses.Now it's a case of pay first, with a good 95% of transactions online. No more chasing, and if someone can't afford it, simple, then don't buy it 
May be worth looking in to some sort of Debt collection company that does the chasing for you in return for a % of the invoice - obviously you dont want the heavy mob being sent out for a small invoice but similarly why should they not pay on time? You have a tough balancing act to juggle - I feel and have shared your pain ! Clive
why you don't talk to your clients?
Not that I like to drop clients, but I have read some articles about this same subject and almost every one said get rid of the clients that make you little and cost you a lot of time. I personally agree from experience. I'm sure you spend more time in hand holding and collection of these clients than you make, and the greif/agrivation they cause far outweighs the value of the accounts. Give them an ultimatum, next time they slow pay they are done. That way it can be them that makes the decision to sever the non-productive business relationship not you. You are not their personal financier, you are another business and it is not fair to you to have to carry their costs. Fun123
It's been said that "In a world awash in debt, power shifts to the creditors." But in general, unless there is some sort of collateral being held, or incentive to pay (IE services have not yet been rendered) in today's world it is very difficult getting persons to pay for things. Scintillion
I'm actually experiencing this problem myself right now, waiting for a small sum of money from a client. I have a good rapport with this person, but they've been full of excuses and delays. It can be difficult to demand payment and still maintain a good professional relationship with them, I'm currently in the midst of constructing yet another carefully worded email to nudge them on!
“...I'm currently in the midst of constructing yet another carefully worded email to nudge them on!” and this is the problem, especially if the value concerned isn't particularly high, it becomes an overhead for you, writing off any potential profit. This is just the sort of client that none of us want |
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