First you pitched, then you grafted. Your client was even super stoked with the quality service that your company provided.  Yet, when it comes to making payment for the project, your client is simply radio silent…  Strange, right?  Apparently not really.  In fact, getting paid is perhaps one of the most paralysing parts of running or owning a small to medium-sized enterprise (SME).  So much so that the internet boasts a library of resources on how to safeguard yourself against late or non-paying clients. Wikipedia even has an eight-step guide on how to banish those non-paying client blues for good.

As a business person, your time is just as valuable as your money.  So why spend hours doing the research yourself, when you’ve got MoneyShop?  As the experts in money matters, we’ve compiled a brief and simple list of actions that you can take to get your clients to pay the money they owe.

Reconfirm your client’s payment terms

Remember that not all of your clients’ payment terms are the same.  Some companies follow a payment-on-delivery philosophy, while others may have drawn out payment processes of between 30 and 90 days.  The bottom line is that you need to reconfirm how long it usually takes this particular client to pay your invoices, before you go accusing them of paying badly or owing you money.

Send a polite reminder

Once you have established that your client really is taking exceptionally long to make the payment, it is worth writing them a quick reminder email.  The key here is to be extremely polite and tactful.  It may be that your client had a crisis and making payment simply slipped their minds.  Or the reality may be more disheartening and your client may be experiencing their own cash flow headaches.  Either way, you don’t want to go burning bridges with valuable business connections.  Rather be patient and show them that you care about more than their money.

After two months, take action

At this point, we’re hoping that your client would have made the payment that is due to you. If, however, two months after you have sent the above reminder email you still haven’t seen a cent or come to a payment agreement, it’s time to take action.

No… With action we don’t mean taking a cricket bat to your client’s Porsche! Instead, we advise approaching professionals to help you get your money.  Consider getting a lawyer’s letter demanding that payment be made or turning to an experienced debt collector.  If neither of those appeal to you, you can also settle your dispute at the small claims court instead.  Whichever option you go for, just ensure that what you pay to get the payment in isn’t more than the actual payment amount itself.

Keep your own business booming

We know that you also have operational expenses and salaries to pay, just like every other business.  And waiting for a large payment to come in can wreak havoc with your business.  But there are ways that you can limit the damage of late payments – like taking out one of our instant cash loans for bridging capital.

Lastly, don’t get discouraged when you have to wait a while for payments to come in.  Remember that it is part of the cycle of business and that you can manage it effectively.