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Collecting Past Due Money

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I am running a software consulting business and have just run up against my first customer who is not paying their bill. I sent an invoice due on receipt on the 15th of December and it is now the 24th of January and I have still not been paid. I have sent emails and left voice mails asking if they could check on the status of my check.

All correspondence about the work has been via email. I have emails where I sent the proposal and the price. And emails where the customer accepted. I have completed and delivered the work and they are actively using it.

I *do* have the ability to take back what I did. But it would require accessing their systems through the password they gave me.

Truly, I'd just like to get paid and not be mean about it. What would be the best way of approaching this customer?
1 year ago



2 Answers
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Of course you want to be paid, and not be considered mean. there are businesses who take advantage of someone being too nice.
I learned this lesson the hard way as well. I ended up not getting paid on several accounts, and then I decided to follow what all the big businesses do. In the agreement that we discuss before any work is started my new client understands that a retainer is required and the final protion of the job will not be released until the final balance is paid. The final passwords are not released until everything is paid. I did have prospective clients balk at this portion of the agreement, and I learned through the grapevine, they didn't pay the person they went with.
To collect on unpaid invoices, I still do what big businesses do. I researched and found formal collection letters that are still nice, but firm. The letters advise the time schedule for paying the invoice, the time limit before it goes to collection. Only one client failed to every pay and they went out of business.

Good luck

1 year ago

offensive?

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I have been through this a time or two.  In the collection world you have a long way to go as your cycle days are short.  What that means is they haven't owed you the money for very long.  If it's a one time client go after them hard.  I would send D&B collection letters and if that doesn't work D&B has a collection service that is pretty good.  The reason to use D&B is that it will hurt their commercial credit so if they want to borrow money and someone pulls a D&B report on them, they will see it's negative because of you.
1 year ago

offensive?





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Payment x 1

Asked 1 year ago

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