Actions to Take When a Client Doesn’t Pay in South Carolina
Late client payment and overdue bills are two terms no business owner wants to hear, especially once a project is complete. But these are some of the unavoidable things that come with doing business. Rendering services, delivering products, and completing a project sadly do not always guarantee timely payment, and that is why we have invoices. Clients are expected to clear their outstanding invoices; however, not all of them do that on time.
You could send them the remainder of the outstanding invoice to get your money because it may have slipped their mind. However, what happens when you send several reminders but the client still does not attempt to pay? It may seem like the client has the power once you have offered your services and the most you can do is demand for payment. The thing is, you have recourse; there are actions you can take to get back some or all your money for products, labor, or services rendered.
Introduce late fees to the debts
Incentivize timely payments by listing late fees in the clients’ invoices. Some clients only need a nudge to open up their checkbooks. Before sending them an updated invoice with the late payment fees added, you should give them a heads up. For some, a notification that you will be adding late fees to their debt would do the trick. Once a certain date has passed and payment is complete, you can send them the new invoice.
Sell the invoice
Following up on debt with no prospects of payment in hindsight is frustrating, time-consuming, and draining. If you want the debt out of your hands, you can go factoring, where you sell the invoices to a company for upfront payment. Although you may not recover all your debt after deductions, you can still secure a good deal and eliminate the hassle of dealing with clients that do not pay.
Enlist the help of a debt collection agency
If you have tried all ways to get paid and your client still refuses to comply, you can seek the help of a South Carolina debt collection agency. Debt collectors are part of the business landscape that you can hire to get your debts paid. These are experts who will follow up with your client and collect your money at a fee. Through research, you can find some agencies in South Carolina offering their services at an affordable fee.
If the client doesn’t pay in South Carolina: Seek legal action
Debts are an inconvenience to a business; thus, sometimes drastic measures are necessary. Legal action is the last resort for most business owners because it is expensive and time-consuming. However, if you are determined to get your money back, you can find a small business lawyer to send the client a letter for the unpaid invoice. You can do some digging on lawyers in South Carolina who offer their services at a good rate and hire them. For some clients, a threat of legal action may spur them to pay up, and if not, you can proceed to sue.
You also can file a lawsuit against your client if they do not send you your money. The Debt Defense Collection in South Carolina will help you get a judgment against the client if the amount owed is less than $7500.
Part and parcel of business are dealing with difficult clients who are stingy with their money and payment. And these harsh economic times have not made things any easier, with more and more business owners encountering problems with overdue client payments. While you may try to correspond with clients to find a payment plan to clear the debt, it does not always work; these are some of the actions you can take to get your paycheck.