Set
Established Payment Guidelines. To avoid problems in
the first place, establish ground rules for how payment should be made and
stick to them. Clearly spell out your terms of sale and payment
options on your order form or brochure.
Get it
in Writing. Get the customer to sign an agreement/
contract or memo of understanding as to the payment terms, and explain
these also to the client.
If the
Project or Supply is ongoing charge monthly instead ot at the end of
the Supply Period. If payment is not received within
the agreed term, do no more work for them until payment is made.
Send a
series of Reminders. However if written reminders don,t
work call personally and ask for the payment.
Evaluate
the Situation. Present Options. If the client is
overdue by a small margin (say a week) give them some time. But if the
days turn into weeks and months, start with a friendly phone call to
follow up and let them know the payment is overdue. Try and get a date for
payment and follow up if they dont meet that date.
Be
Persistent in trying to Collect
Send a
Registered Letter. This has the effect of getting your point across
without having to confront them verbally or in person.
After all
else fails, let them know that you are either turning over the matter to
either your Lawyer or Collection Agency, or taking them to the Small
Claims Court.
Be Willing
to take Legal Action.
Know
when to Quit. Try to collect if you have the time and
ambition to do so, but if not, just write it off to experience.
Sometimes the money is not worth the aggravation.