What should I do if a client doesn't pay?
Not receiving payment can impact your business, the Federation of Small Businesses (FSB) found that 30% of small business had seen an increase in late payment of invoices and 8% of these businesses could close as a result.
We suggest using these top tips to keep in control of your business’ payments.
If you haven’t received prompt payment from a client, you should refer to your invoice’s terms and conditions (click here to visit our Invoice Checklist ). Most invoices typically include a payment term of 30 days. By sending a polite reminder email or making a phone call to the client should encourage them to pay.
If you are still working for the client e.g., construction build project, you can put down tools and stop doing any work immediately until they have paid for any outstanding work. This should encourage them to pay the outstanding debt to get the work completed.
If the above hasn’t worked, you can send a final notice. A final notice will be the last communication with the client offering them the last chance to comply with the specific conditions of the invoice before taking legal action.
You can either go down the route of a solicitor which is expensive and time consuming or issue a debt collection agency to recover the debt for you. A debt recovery agency like ourselves have experience of dealing with clients who don’t want to pay and is a quicker way to recover the debt. We will advise you on the best route of action.
If you would like to refer a debt to Westbury Collections, please visit: https://www.westburycollections.com/referadebt