Those who sell serices

[Kristine233]

How do you handle non-paying/slow-paying clients?

As WAHMs its not like we have huge legal firms to go and handle this like big companies. This is why I have a contract and usually charge up front for services.

But I made the mistake with a local client and didn't charge up front. I'd worked with her on other projects (she's in marketing and gets the clients and then hires me to do the web design part) and had no issues. I know she's had a lot going on in her life, but so do I and this is my only job. This happened one other time with a local client and I never got paid, over a year ago.

So now I'm sitting here wondering how do I go about enforcing this with her. I sent an invoice, she replied and said thanks she'll pay it when her client pays their invoice. But, I'm thinking... SHE hired me to work on this project, why am I waiting on HER client? And how long do I have to wait? Its ultimately her responsibility, you know? The project was finished months ago! I've also not been getting regular payments on other things as well, which is really hard to budget for when you consider this part of your income.

Normally I'd take it in stride, but things have been so slow! (so slow that I haven't been able to see any of my family in months because I can't spare the gas money to visit them- even missed my dad's wedding) So I need advice on how others collect payment owed for services already provided.

Got any tips?

[E.V. Lowi]

That's awful! I have been in the same boat many times and have been stiffed a couple too, when the client has declared bankruptcy. :

I never charge upfront because it is not the way that most businesses work, in my industry. It is customary to give net 30, which I do, but when it goes past that, then I send a late notice and a reminder that I am entitled to charge interest on the outstanding amount. This usually gets them to pay. If not I just keep sending late notices with the additional amounts of interest tacked on. Eventually the company will pay but a few never do and unless they are local and I can sue them in small claims court, or if they are long distance and the amount is small, say under $500.00, then I just writ if off.

Sorry you are having to deal with this. The economy sux right now and businesses are really hanging on to their cash. Hope you get it worked out.

[Night Owl]

This is one of the reasons why I pay Prepaid Legal $40 a month.

I have had clients who didn't pay, so my attorney sent the client a letter (for no extra charge) stating that she needed to pay and what the consequences would be if she didn't.

So far, I haven't had a problem with people paying after they get one of these letters. They are usually apologetic and very prompt at that point.