How to Get Your Clients to Pay Their Bills
Running a small business is not always what you imagine it will be. People start a small business because they love what they do and they want to make a living doing what they love, but the business aspect of getting clients to pay is less exciting. However, with a calm but firm attitude bill collecting doesn't have to be as bad as many fear.
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Instructions
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Set a firm payment policy. Letting your clients know the rules and applying them universally will help the client understand that you are serious about receiving payment.
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Send reminder letters to let your clients know that they haven't paid their bill. They may have innocently forgotten; even if it was not innocent, reminders pursuade people to pay.
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Find out why they haven't paid. Ask what they are waiting for and get details. Examine the details to see if it seems true. Don't argue with the client, but if they don't have a lot of details there is a good chance you are being fed a story and you may want to consider legal action.
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Don't yell at the client. Yelling at someone is unlikely to pursuade. Be polite and understanding. You will usually catch more flies with honey than with vinegar.
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Find a way to make it possible to pay, such as asking if they can make a partial payment now and pay the balance later. Work with the client however you can within reason, possibly taking small payments on paydues or setting up an arrangement that will help them pay.
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Get to know your client personally. Ask how they're doing and talk specifics about their situation. Don't act like your prying, but like you care. They will appreciate your interest and may be more likely to expedite payment.
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Inform your clients of the legal requirement to pay and the lawsuits that may come if they don't. This is a little more pushy but in some cases necessary. File a lawsuit if all else fails. Even if this takes time and money it may be better to to go through it than to have a reputation that you can be ripped off.
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Tips & Warnings
Be friendly but don't be a pushover.
Be lenient when you can.
