Client wont pay.
Out of context: Reply #26
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- xicast0
You're not done yet.
If you work with a lot of clients or have a regular turn-over with small projects like these, its time to learn about the business side of writing code for a living.
First step: Your Contract. It needs to include a very clear clause that payments received after their due date are subject to late penalties of a defined percentage. It also MUST state that the client is liable for any fees (legal or otherwise) arising due to the collection of their balance due.
Second: bill regularly and stop work when payments are late. I know it makes you sound like a hard ass and you think the client won't want to continue, but I've learned the hard way that if their payments are late, they are always going to be so. You don't want this client any more.
Third: Hire a Collection Agency. I use one that is ok. They haven't really been able to turn up any money for me but they do make the non-paying client's life absolute hell. The agency called one guy's wife at work and left daily messages. They called another debtor's NEIGHBOR trying to find him. Now that is humiliating. I had to pay like $500 to retain the agency (I think they apply that towards collecting against 60 clients or something to that affect). They keep 18% of what they collect. If it goes to court, they will find representation for you and keep 49% of the collected money. You have to pay legal fees, though. You contract will allow you to include those in the winnings.
It sounds expensive at first, and it is. But it gives you a HUGE edge for handling these kinds of jerkoffs. That way, you can go back to taking care of your good clients and leave the credit reporting to the agency.
Hope this helps. Good luck.