When you own a business, one of the most difficult things to deal with is late-paying customers. It has been months since they bought the services/products from you, but they give a new date or an excuse every time you ring them up for the money. You are not alone. Almost all business owners face the same issue, as even the best customers can become late-payers. 

Not receiving timely payments can put a strain on your relationship and even damage the entire business relationship. Therefore, when such a problem arises, it is important to take every step very carefully. After all, you do not want your customer to file a case of harassment against you. Consult with an attorney by clicking on this website.

Steps to take when a customer just won’t pay

1. Set a gentle reminder. 

The first step in collecting a customer’s due payment is to send them a friendly reminder. Many people fail to make a timely payment; therefore, the first follow-up is necessary to remind the client to make payment as soon as possible. 

2. Do your homework. 

Gather details about the invoice and what overall business the customer does with you. A big party is not going to be pleased while receiving a call of a relatively smaller invoice. Rather, they might reconsider carrying on business with you. 

While on the other hand, you need to contact a first-time customer with large overdue bills sooner rather than later. You can make special considerations for your long-term customers when it comes to getting the due payments. 

3. Maintain open communication with customers. 

One of the root causes behind due payments is the failure to establish good communication between the supplier and customer. Some customers may be non-compliant with the initial terms, and you need to have a talk about this with your client. Following the conversation with your client, send them an email and document everything you agreed upon. 

4. Ask the reason behind the non-payment. 

If your client is unable to pay his due bills, be considerate and open to hearing their reasons. Ask them about their financial complexities, their satisfaction with your work, or anything that signals their payment refusal or late payments. You can work toward the solution once you know the cause of the problem. Most people are willing to come up with a solution if they are provided with the opportunity to do so. 

5. Use an intermediary for payment management. 

An intermediate party can work neutrally and calmly since they do not have any emotional attachment to the situation and come up with a solution quickly. This will save you time and effort and provide better results in collecting payments from the clients.