Pay before release
Out of context: Reply #13
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- thebottlerocket0
Small job or not, the real issue is exposure. Exposing you business to a potentially massive bad debt or not.
You're right in that small projects don't warrant complex stages and invoicing procedures. The main reason being that your exposure to bad debts is so much more reduced on smaller jobs. Ideally, you should be able to weather a certain amount of slow payers. But that is not to say you go easy, because lack of debtor management is a key killer of small businesses.
As we're not talking exact figures here, only you can guage how much an exposure this is and if you should structure how you charge next time.
But bear in mind, personally I wold be doing two things, I would be making sure the 50% issue is resolved first and secondly, I would be making sure I am getting in emails now, confimration that they are happy with the work you have done.
The reason for doing this is that you need to show that their lack of payment is not due to them being unhappy with the work. If they are happy, and the site is launched, they have very little recourse.
Also, remind them, that the initial 50% is now accruing interest, hopefully in your contracts you have placed a clause that reads something like 'current base rate plus 5%' or something like that.
Good luck. bear in mind, annoying as they are, they are not the enemy yet and a good result for you is to be paid, fully and not have burnt any bridges.
- Thanks, great advice. I think I will do those steps.MakeBelieve