#26 You haven’t been paid, now what?
Cash flow is the cornerstone of any small business so what do you do when outstanding invoices accumulate? There seems to be a theme of late as I’m increasingly talking to my new clients about invoices or payments that are outstanding for them.
In this episode, I’m diving into the topic of what to do when you haven’t been paid. I share my tips for what to do and outline the process I go through with my clients to help put a plan in place. I discuss going back to basics by looking at your business terms, determining if there have been changes to the scope of work and ensuring you collect as much information as possible.
I also discuss the process of taking legal action, when and why this would happen and how having systems properly set up from the beginning will avoid you getting into trouble in the future.
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[1:50]: What is it that you have contracted to do, what obligations does the client have, what are you to be paid, and what are your payment terms?
[2:50]: We then explore if there have been any changes to the scope of your work or if the client has any issues with the quality of your services
[4:00]: It’s important for me to get as much information about the situation as possible so I can properly assess what basis the client has for withholding payment, if any, and what the best move is from here.
[6.30]: It’s better to have our systems properly set up from the beginning so we can avoid getting into trouble in the future. However, if we haven’t, all hope is not yet lost.
[7.50] If a letter of demand is issued and the client still doesn’t pay, you will then begin legal action to recover your funds.