Sound processes and tight credit controls are the first thing to get into place. But prior to all of that. Building relationships and understanding the rapport and state of the client’s finances and structure prior to engaging in business together. This will give you a good foundation to build an instinct and contract between both parties.
If the client fails on mutual agreement then there are various ways to entice payment. These are by any means set in stone but they have been successful for us.
1. Suggest a payment plan following YOUR terms to help them pay the outstanding balance.
2. Call in a debt collector. Some can be ‘No collection, no fee’ and others charge by set fee or percentage up front.
3. Court action. As a last resort. This will cost you fees up front and if you feel that you do not want a relationship with the client any further then this is the only course of action. Be aware though, as a very strong word of warning. You may win the court case and CCJ’s are issued but if the client offers to make a payment over any period of time after they have declared their incomings and outgoings. The judge will accept and it will be part of the court order to have those terms adhered to no matter the longevity of time. Even over years…