Are the projects finished? If not, stop work until the clients pay up, and tell them why. If you're already done, you could try an in-person visit to explain the situation: You've already paid for the materials and labor, and you have fulfilled your part of the contract. Maybe they'll either write you a check on the spot or tell you if there's a problem that makes them not want to pay,.
I would file an intent to lean Send none copy registered mail and another regular mail. Usually this will get results, ALWAYS remain proffesional and courteous.
Hello. Having worked in credit and collections for a great deal of my career, I offer you the following suggestions: l.) If the client is one that you have worked with before and have an estasblished "rapport" with simply ask what is holding up the payment. Perhaps they simply do not have all of the money at this time. At that point you can suggest a payment plan that will enable them to keep you and your services and will allow you to get your money, which is better than never getting paid. And next time you can arrange better terms for yourself so as to keep your cash flow flowing? If this is a client with whom you have never worked before, then you have to basically do an investigative approach. Was the work not as they anticipated? Explain any recourse they may have in that case. If you are in the process of working with them advise them that you are placong their account on "hold" both verbally and in writing, until such time as they meet their commitment. Again and unfortunately the case may be that they haven't the money and again if you allow for a payment plan that will get you your money, you can then decide wether or not to do business with them again. Money is like talking about sex or any other "uncomfortable" subject. Usually it is embarrassment that creates the avoidance of discussion and a frank while not hostile discussion will usually result in satisfaction all the way around. Finally in the event that they are the worst case scenario- people who just won't pay without any legitimate reason, then explain that you will seek whatever legal remedies that are available to you and also put that in writing as well.
Good luck
JM
Posts: 1 | Location: New York | Registered: 03 May 2005
We use a detailed contract that states how & when payments are to be made. Either in thirds or halfs. You only have 2 choices once the job is completed. Is eat it ( right, we do not do this for fun) or try nicely to through a visit and a few calls. Builders lien is a way to go but it might take awhile to collect.
MORGAN, Although if it getting paid hasn't already happened by now, thing's don't look to good. Especially if you do or don't have a contractors license. In your case I don't know you left that out, and also what city/state. In California you can go file a Mechanic lien against there home. which won't get you your money right away. But will put you in line to get paid if they try to sell their home. Or that ugly small claims court, I don't know the max you can sue for which was not much awhile back. It may pay for you to check that route. And this is simply my thinking if you have your contrators licence see if you can sue them civally, and attach court costs, and reasonable interest rates. Sorry that that is all I have to offer. Richard
Hi, another way of getting pay would be through factoring your invoices monthly. Which will allow you to increase your cash flow monthly in a timely fashion. As well as provide additional money for expanding your business.
Although this may not solve your immediate problem--Do you have your clients sign a contract or Agreement, and require a deposit on the job - and explanation of how and when other payments will be made? This should be a matter of business practice. Once you have a signed agreement, you have something to go to court or arbitration with.If not, it is their word against yours. And if they have money already invested, they are more likely to pay the balance. Have these clients expressed displeasure in the goods or services that were provided? Was the job completed to specifications in a timely manner? This could have an effect on their willingness to pay. If you have not done so, mail a Certified, Registered Letter - so you will have proof that the bill was received - Stating that the bill should be paid in 10 days from date of receipt or it will be taken to a collection agency and a lien will be executed against the property. (You can do this at your county clerk's office)- Tell them that when the balance is paid or when their check has cleared their bank (approx.14 days)- you will execute a lien release on the property. Wait the 10 days and on day 11 - go to the clerk of court and file the lien. Good Luck.
YOU CAN ALSO MENTION TO CLIENTS WHILE REQUESTING PAYMENT, THAT SHOULD THEY HAVE ANY PROBLEMS WITH YOUR WORK, ALL WARRANTIES ARE ON HOLD TILL BALANCE IS PAID IN FULL. SOMETIMES THAT SHAKES THEM UP. NAVY11
Join a credit reporting agency and let ypur customers know that any delinquencies past 30 days will become a permanent bad mark on their credit rating.
This works much better than a threat to sue since most people depend on good credit for survival.
Since I began using a credit bureau some 15 years ago, my deliquencies are near zero.
here is something for every one.a simple job compleation form.when the job is compleated the form is sighned by the customer and the contractor or reprentitive of the co. if the customer has concerns at this time they will let you know once these are resolved and they have sighned the compleation form they need to write the check. this is a legal form and holds up in court very well after i started to use this procsess pay has pretty much been on time.they no longer have excuses other than they dont have the funds then its time for a judgement. Tim; Rock Creek contractor service inc.
