Every year, many tradesmen lose out on valuable income due to non-paying clients. Here are my top 11 Tips on how to prevent a non-payment.
Choose Your Customer
Vet potential commercial clients using credit check services.
Vetting consumers is more difficult but if a client is regularly paying late, you don’t have to work for them.
Detail your quotation
Detail your quotation to protect you and the client. Ambiguity allows room for argument which is important to avoid.
Provide your Terms and Conditions
Ensure you provide your terms and conditions of business. This shall define what your work includes, doesn’t include, payment structure and what happens when either the client or you doesn’t do what they say they will.
Consider taking deposit and/or staged payments
Do everything you can to get money in the bank. Asking for a deposit is fair.
Do a bloody good job!
If you provide the client with the work you promised, there is no argument for not paying.
Detail your invoice
Provide a detailed invoice with your company details, date, date of completed works, what you carried out in detail or reference a quotation and how the client is to pay.
Make it easy to pay
What is the easiest way for someone to pay? Everybody has a debit or credit card and there are many payment solutions to take card payments. It is always good to provide options.
It is a very simple formula; the quicker you invoice, the quicker they can pay.
Use invoicing software
Invoicing software can speed up invoicing and can track payments.
Keep the client up to date throughout the process and build a relationship.
If the client still hasn’t paid, it is time to exercise your legal rights. You can consult a solicitor, a debt collection agency or take action yourself. None of which guarantees payment, but it can help.
Written by Dan Jackson AKA Dans the Engineer
Disclaimer: All content within this blog post are the opinion only of Dans the Engineer and should you choose to take any of the advice or information given, we accept no responsibility for any loss you may occur.
For more information on Dan Jackson and his business content visit: https://www.danstheengineer.co.uk/