Collecting Debts
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- 19 Responses
- Benja82
I have a client that is proving to be a right twat when it comes to paying for work I have done. What process do you normally go through to collect outstanding payments?
Im thinking hammer + toes to start with
- stewart0
this is how we do it
http://www.intrum.co.uk/
- Benja820
before this link was sabotaged does anyone have any sound advice!?
- spraycan0
join a gang
- jamble0
I give them a couple of reminders after 30 days if they're reasonable clients and then I send a hard copy letter + invoice saying if it's not paid in 5 days I'll take them court as per contract.
- TheBlueOne0
How many of you freelancers write in finance charges into your contracts...say on payments beyond 30 days, and then 60, etc...
- I do, but I also discuss their pay cycle before hand. Some places have 60-90 day cycles, just the way it is.harlequino
- jamble0
I write in that all payments must be made 30 days from invoice date otherwise they're subject to a late fee which is usually 5% of the invoice total.
If an agency has a longer than 30 day payment cycle - and I do know of some that don't pay invoices for 90 days, they're just taking the piss and you should negotiate better terms with them if you're able to. If not, suck it up and take the money when it comes in but be fucking ruthless if they're a day late.
- airey0
If you don't want them as clients anymore go to a debt collector service, they're very reasonably priced.
If you do, the multiple calls and emails are about it. For a client of mine I also initiated a 40% up front for every single job, more if external costs and services are needed.
It's getting worse thanks to the gfc so try not to take it personally, a lot of the issue in some cases comes from the client also getting hosed by late payments.
- airey0
Also, these terms and conditions / contracts are all well and good but unless you have 8 months and 10 grand to use in court are irrelevant, contracs are only as good as you can legally aford to enforce so have them but have some real plans of attack also. The reality of the legal system is a tad different to what many people seem to think and even if you 'win' you might not see an cash as winning and enforcing the win are completely separate.