24 Jan 3 Quick Tips to Ensure Your Small Business Gets Paid
Financial disputes are a pain to deal with.
Every contractor has that one client that doesn’t want to pay your invoices.
It can be an extremely frustrating and confusing experience and can often lead to business owners entering into a vicious cycle of mistrust which isn’t healthy for yourself and your business.
Here are 3 quick tips to ensure your small business gets paid:
Once your client has agreed to hire you for a job, they enter into a legal contract with you. Often these are written contracts. Sometimes they are verbal. Both are valid contracts, however, a written contract will be easier to prove and refer back to. A strongly written contract in simple English will be your strongest argument when trying to get back money owed to you.
When handling paperwork, keep your invoices, letters, and emails simple and accurate. List payment terms clearly on your invoice. Make sure that they are reasonable; minimum 14 days.
Have a system in place
Have an automated system in place that ensures an invoice is sent out as soon as the work is done. A reminder or follow-up email is sent two weeks later. If the payment due date is expired, make sure you follow it up straight away. Statistics show that the longer you leave a debt, the less likely your customer is likely to pay it.
Make sure you maintain an open & healthy relationship with your client. If your client is facing some sort of hardship, being compassionate with your payment terms will benefit both your client and yourself. A payment plan is a good way to encourage your clients to pay their debts slowly and sustainably.
If it gets to a point where it feels like you aren’t going to get paid, contact Neat Law immediately in order to start our Neat Debt Recovery process.