What to do if clients don't pay on time

[prag]

I have a situation. A client has promised to pay by electonic transfer the same day as the job was done. All the my bank details are correct because I checked my invoice book.

A previous job was done for her and she promised to pay half of the total, this is at her insistance, but I got my deposit only the day I was to finish the job. She did , however, make a payment for this particular job when it was finished,two days later.

The second job for her is completed now almost a week and she hasn't paid up, even though she said she would transfer the money that same day.

This is a breach contract. The dilema is how long do I wait to phone her about reminding her and not being pushy??
The flip side is I also spent a small fortune on locks and other materials, so the cash would be needed.

The other dilema is I don't want to sour the relationship because there is other work pending.

What would you do in this instance and how long will you wait to remind the client?

I remember reading somewhere that if payment wasn't made, this particular locksmith with write them a note that states he would undo all the work he has done. Just a thought, but I doubt I would go to that extreem.

Thanx

[jpb06080]

Personally, I'd remind her within the next day or two. If she's paid before, and theres work pending, she probably isn't trying to screw you over. I'd reccomend not waiting, because then it can easily become out of sight, out of mind. My boss routinely doesn't get his billing done on time, and then waits months and months before recieving payment, if he gets it at all. Personally, that would drive me absolutely nuts. If it seems like she's trying to pull one over on you, undo all the work absolutely! At least then you'll have something in stock for the next time a similar job comes around. Hope it works out.

[WOT]

I have a situation. A client has promised to pay by electonic transfer the same day as the job was done. All the my bank details are correct because I checked my invoice book.

A previous job was done for her and she promised to pay half of the total, this is at her insistance, but I got my deposit only the day I was to finish the job. She did , however, make a payment for this particular job when it was finished,two days later.

The second job for her is completed now almost a week and she hasn't paid up, even though she said she would transfer the money that same day.

This is a breach contract. The dilema is how long do I wait to phone her about reminding her and not being pushy??
The flip side is I also spent a small fortune on locks and other materials, so the cash would be needed.

The other dilema is I don't want to sour the relationship because there is other work pending.

What would you do in this instance and how long will you wait to remind the client?

I remember reading somewhere that if payment wasn't made, this particular locksmith with write them a note that states he would undo all the work he has done. Just a thought, but I doubt I would go to that extreem.

Thanx

Do you really want to do work for her if she's habitually late in payment? Send a friendly reminder by mail that her payment is past due.

It also helps to fill in your country, so we have a better mental understanding of payment terms culture. In the US, "wire transfer" isn't a common way for an individual to pay tradespeople.

[freakparade3]

The best wat is to talk them into a restricted key system. Then when they need more keys tell her you'd be happy to, as soon as the past due bill is payed.

[linuxbz]

When someone gets in financial trouble, they have to put off all the bills they can (I know this from experience). The sad truth is that the most insistent creditor will be the first one paid, and one who is afraid of pressuring too much is in danger of never being paid.

Be nice, but call often. If she was supposed to transfer the funds immediately, call and express concern ... and ask for it to take place right away. If it doesn't, tell her you must cover both your out of pocket and your labor expenses.

If she says she is trying to pay you but having difficulty, get a partial payment immediately, and establish a quick payment schedule. Tell her if she does not meet that schedule you'll have to turn it over to someone for collection.

As others have suggested, don't worry about losing her as a customer. As long as you are polite but firm, a good customer will keep using you. If she gets mad and says she won't use you anymore, she's no loss anyway. That's not the kind of customer you want.

[Jaakko]

WOT, are you serious about that people don't do wire transfers in US? In here no one uses checks and money goes as a wire transfer, if it is an invoice. I just go to my banks WWW-site, ener my info and pay what I have to pay from my account Lazy solution

In here, if an invoice hasn't been payed in the 7-14 day period that has been written in the invoices payment details section, the invoice sender sends a new invoice with up to 5 EUR "handling fee" added. If the invoice hasn't been payed still, the invoice is usually sent to a collection agency that sends yet another invoice with 5 EUR added and some handling fee of their own. There is a limit though, depending on the amount of money that was initially in the invoice. If the customer does not pay this either, the collection agency usually makes it a court case and if there is no objections, the court will rule in favor of the collection agency. If the customer doesn't pay after court order, (s)he will lose ability to get credit for 5 years and the collection agency can get the money by selling some of his/her stuff or they will make a payment contract.

I would ask the customer in the phone for the real reason for not paying yet, it may be either a oh-I-frgot or they have financial issues (student, unemployed).

[raimundo]

If the person is poor they may have a cash flow problem, which can take a little waiting, however if more work is anticipated, this is unlikely to be the case. You could telephone for an explaination or just send the bill, as stated, with a handling charge for late payment. Ultimately, if the customer stiffs you, you should look to your local locksmiths association and see if they have a list of bad customers, you could put her on that.

Recently I had some small outright thefts, I know who did them, but its too small for the police to care, actually here, they won't do much about stuff like this at all, unless its one of them who is ripped off. they protect and serve themselves. I can only wait till the time when they have put themselves in some new jeopardy then I can call the police and see if they want to do anything.

[vap0r]

Getting a mechanics lien would be one option. Another would be to sell the debt to a collection agent.

[prag]

WOT wrote

It also helps to fill in your country, so we have a better mental understanding of payment terms culture

I am from South Africa. Wire transfers of electronic transfers are a common for of payment. We also have cell phone banking and it notifies one immediately when a payment is made. Quicker than cheques.

Oh, before I forget, I have changed my profile to indicate my country of residence.

[prag]

Just an update on the situation.

I phoned her this morning and guess what was her answer?????

One of the lock I worked on was not working. All I basically did was just find a key for the lock( it's a union 4 lever ready cut) This is strange but I immediately made arrangements to see to the offending lock within the hour. Her husband oiled the lock, so something went wrong when he replaced it because the lock worked when I checked and double checked.

This is a wing bolt lock for a sliding door. Anyway, sorted it out and again asked for payment very politely. Was told the husband needs to check it and after his approval a payment will be made. I WAIT WITH BAITED BREATH.........

[freakparade3]

I would have removed the lock and left. He screwed it up and refused to pay for it. His problem, not yours.

[MacGnG1]

I would have removed the lock and left. He screwed it up and refused to pay for it. His problem, not yours.

yea. i dunno about you but i would take my lock back and they'd be S.O.L.

[globallockytoo]

Just an update on the situation.

I phoned her this morning and guess what was her answer?????

One of the lock I worked on was not working. All I basically did was just find a key for the lock( it's a union 4 lever ready cut) This is strange but I immediately made arrangements to see to the offending lock within the hour. Her husband oiled the lock, so something went wrong when he replaced it because the lock worked when I checked and double checked.

This is a wing bolt lock for a sliding door. Anyway, sorted it out and again asked for payment very politely. Was told the husband needs to check it and after his approval a payment will be made. I WAIT WITH BAITED BREATH.........

This is unreal......who works this way? COD means COD.......unless by prior arrangement.

Late fees apply......price increases by $7 per week (20 rand) until paid.
get a supply of tires and put them outside their house......ready for burning!

(Just joking)

[Safety0ff]

I would have removed the lock dand left. He screwed it up and refused to pay for it. His problem, not yours.

yea. i dunno about you but i would take my lock back and they'd be S.O.L.

To do that you'd have to gain access to the fasteners which usually need the lock to be unlocked and the door opened. Chances are, by the time you get your lock back you'll have commit trespass / breaking and entering.

This is unreal......who works this way? COD means COD.......unless by prior arrangement.

Late fees apply......price increases by $7 per week (20 rand) until paid.

Now, I don't know much about south african culture, but you've got to keep in mind that people might have different attitudes regarding payment and when they consider a job done.

I am from South Africa. Wire transfers of electronic transfers are a common form of payment.

So I've heard...

(Sorry, I couldn't help myself, no offence intended.)

[WOT]

How much is the amount? If it's <$100, ask yourself if it's worth the effort. Blacklist her and deny her all future service.

If you insist on showing her you don't take BS, take her to small claims court and sue.