I have recently found myself in a situation in my
business where a client I did some work for in May has decided not to
pay me. I am wondering, does anyone know an effective method of
collections in a situation like this? This guy is a tough player
and is withholding payment out of spite. I feel he will not pay
unless I force him to.
I know what you are talking about... I think what you need to do is
toughen up your policies.. I think it`s time for you to start amending
all your contracts if you have any, if you don`t... This is the time
where you goto legalforms.com and find yourself a contract that fits
your type of work modify it or have a lawyer modify it for you.
What I did was, joined pre-paid legal services, had lawyers modify all
my contracts and when someone doesn`t pay, you have an actual lawyer
calling the person.
See the problem with sending him to court is that, even if you summons
him, he can re-schedule, and reschedule, and reschedule. By the time it
goes to trial you would probably not even care about the money anymore.
"A waste of time"..
It takes 30 days for the summons to be handed to him (it doesn`t happen
tomorrow) then another 30 to 90 days for your hearing.. if he
reschedules, they usually do it 90 day intervals. So if he reschedules
3 times thats 9 months form now that you would be going to court.
Although, that would shake his cage a little, I don`t think that,
that`s your solution. Another thing you might want to do is send him to
collections. DUNN & BRADSTREET has a good program where they write
the letter for you and they do the calling.. if he doesn`t pay... Well
then there goes his business credit..
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