Running a business, you hope that for the service rendered you will receive your salary, and most importantly it will affect on time as you did the ordered work on time. However, more and more people are struggling with contractors, who treat the payment deadline not as a border point, but only a suggestion, which they more and more often do not stick to. That is why we have prepared a guide for you , in which we will describe how to deal with a non-paying customer. The step-by-step guide will allow you to avoid stress, and perhaps also help maintain partner relations with the contractor enough not to cross out future cooperation. In case of debt recovery this happens to be the best choice.
The biggest problems with overdue contractors can be avoided by performing basic customer verification before concluding the contract. And while checking buyers for small amounts each time can be problematic and very time-consuming, we strongly recommend set a limit on the value of the transaction. In the event of concluding the contract for the amount indicated above, the contracting authority shall be thoroughly verified.
Most often it is recommended to use Economic Information Bureau. These are companies that for an appropriate fee collect and share information about unreliable contractors and their difficulties in paying debts. However, this data is not comprehensive, because not all entities report unpaid invoices. Both adding and accessing information gathered in BIG is payable, which means that many companies are not interested in the services of such entities.
- Another effective, and often overlooked, way to verify a contractor is to use the Google search engine. Just enter the company name to get access to the entire range of information. In the era of anonymity you should not believe all opinions at once, but if a large number of commentators write about large solvency problems then you should be vigilant. The opinions of employees of a given company may also be a good clue if a large group of them has not been paid remuneration.
- Of course, these are not all the tricks that will help you receive your money on time. We wrote about 7 proven ways our clients shared with us. Find out how they deal with latecomers.
Invoice payment deadline
However, what to do when you rendered the service, issued an invoice and the contractor stopped silently? You are still not helpless.
First of all, right after issuing the invoice you can use the option, thanks to which you will immediately receive funds for the transaction, which the contractor will pay after some time. You will receive the money up to 24 hours after uploading the invoice to our system (of course after prior verification by our employees). This will allow you to avoid the stress of waiting for payment from the client when you have to pay your taxes now. With cash you will be able to vindicate your contractor freely until repayment is obtained.
Motivating for timely repayment
Many people associate the word “debt collection” quite uncomfortably. As if pleading for your due it was something bad. However, it all depends on how you look at the situation. If you consider this process something bad it will not be easy for you to lead it yourself. So let’s start with a change of attitude.