#33 Having trouble getting paid?
When conducting a small business, trouble receiving payment is unfortunately a reality. We can’t control everything and delays in payment can cause cash flow problems that can significantly impact your business.
In this short episode, I discuss the reasons behind why a client may be withholding payment and how you can address them without going to court. It is vitally important that the business’ terms and conditions are clear and detail what the next steps are and provide a pathway for you to follow when experiencing this problem with a client.
It may be awkward to consider, but it is necessary to reflect on the service you provided to determine if the client is withholding payment for a grievance or if they are simply stalling.
I also have an exciting announcement about a new course I have designed for all you small business owners!
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[01:58]: There are a variety of reasons people delay payment, these include: people forget, they don’t get the invoice, there are issues with the services provided, there is a desire not to pay because they don’t think they ought to pay.
[03:04]: The first item to review is, what do your business terms say in relation to payment and your scope of work? Consider the following questions: What have you agreed to do? Did you do it? Has your invoice been issued in accordance with your business terms? What do your business terms say in terms of late payments? Is there a payment time frame?
[03:44]: If your business does not have terms and conditions then it can be difficult to navigate the way forward in terms of non-payment.
[04:02]: Have there been any changes or any variations to what you agreed to do with your client? You need to be crystal clear on what it is that you agreed to provide, what it is you did provide, and what it is you are entitled to be paid.
[04:42]: Were there any issues with the services you provided? Are they stalling or do they genuinely have a grievance that needs to be addressed?
[05:45]: Taking your client to court in order to get payment is not the answer. With proper business terms in place, solid internal processes and systems that you can rely on, and a well developed strategy for your business for this issue - you can avoid court.
[07:01]: I have developed a new course for small business owners! It includes pre-recorded sessions where I explain what business owners need to know, what they need to do, and how they can do it.
Join the Getting Paid Made Easy waitlist here