by Sergris
Your customer keeps giving excuses or refuses to pay you. What can you do? Here are some tips to collect your money.

When you’re not sure if your client doesn’t intend to pay you, try the first following ideas. Perhaps there is a misunderstanding or your debtor may be going through rough times and you could loose a potential good client. As your invoices become more past due, you can use more pressure.

• You should call the customer directly, instead of sending him/her e-mails, invoices, etc. and create a sense of urgency.

• Be precise with your client. You must give him/her a definite deadline for payment in full.

• You may want to offer your client a payment option: cash or check.

• Also, you could use a third party as an excuse. Tell your client that you need the money to pay one of your suppliers or service providers.

In case these tips don’t work, then go to the next level:

• Become a nuisance to your client. Send frequent e-mails, letters, faxes, calls, etc., and let him/her know you’re not going to give up easily. This annoyance may be incentive enough to pay you.

• After you have exhausted all these resources, hire a collection agency. They charge between 35-50% of the amount owed to you but that’s better than nothing. Remind your client that the BBB tracks late payments through collection agencies, and this will affect his/her credit.

• When the dollar amount is not too large, small claims court is a great option. You need to file a small claims action for a small fee and the court will set a date to hear your case. Sometimes just filing the case will urge payment.

Now that we’ve covered the tips to get paid, here are some other ones to prevent this from happening:

• Your first step is to do a credit check on your prospective client by calling the accounting office and ask for a list of his/her regular vendors. When this is not possible, ask your client to complete a credit application form.

• Then, you may request a 50% deposit in advance and the balance due upon delivery.

• You can use a check guarantee service. Telecredit charges a small percentage for each check and although they have a monthly minimum, you don’t have to process all your checks through their service.

• You may include a delinquent interest on overdue accounts as part of your payment agreement. This is legal if you include it in your written agreement or credit application.

• When you have doubts about a prospective client, request full payment in advance.

Hopefully you won’t have to use these measures to collect money from negligent clients. Remember, your best protection is prevention. However when the client can’t or won’t pay, you deserve to collect what is rightfully yours.

Sergio Ferreira has been writing articles related to family issues and home business for 10 years. His web site provides information on how to avoid scams, how to choose the best legitimate business opportunity, articles and resources to help others succeed in their home business. Please visit: http://www.legitimate-home-based-businesses.net

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