All the resources you need

for your intentional life.

Resources, printables, guides, and checklists to turn your stressful life into your best life!

Resources you need for an intentional life.

Printables, planners, and checklists to turn your stressful life into your best life

How Do You Deal With A Customer That Won’t Pay Their Invoice?

May 7, 2019Lifestyle

How Do You Deal With A Customer That Won’t Pay Their Invoice:  All business owners have to deal with difficult customers at some point, it’s just a part of running a business. When it comes to collecting invoices, the majority of people will be happy to pay up on time. But you’ll always get a few people that will try anything to get out of paying what they owe. If this is happening a lot, it can cause you some serious cash flow issues which can be devastating for a business, especially if you’ve only got a limited amount of funding. If you’re not careful, it could sink the business entirely so it’s absolutely essential that you make sure people are paying on time. If you’re having trouble with customers that won’t pay, here’s what you can do about it.

1.  Make Invoices Clear

People will try anything to get out of paying, like claiming that they didn’t know what the amount was or when they had to pay it. You can stop people from making those claims if you make sure that all of the invoices are clear. When you send them the invoice, you should send a follow up email outlining the details for a second time. You need to make sure that you get everything in writing at every stage of the process and you keep plenty of copies of all communications and the invoice itself. That way, there’s no way that they can claim that they were unsure on how much they owe and when the payment deadline is, and if they do, you can refer back to all of the invoices.

2.  Offer A Payment Plan

Sometimes, people refuse to pay because they simply can’t afford it. In that case, you should try to work with them to help them pay the invoice. Speak with them and find out what they can afford to pay and then set up a monthly payment plan. You’re more likely to get the money if you do that rather than just demanding it up front. However, it’s important that you only offer this to people that genuinely can’t pay, otherwise, people will start to take advantage.

3.  Call A Debt Collector

If you’ve been requesting the money and they just aren’t paying, you need to escalate things and pass the case on to a debt recovery solutions service. For a small fee, they will be able to recover the money that is owed quickly so you don’t have cash flow problems. Before you do this, you should give the customer one last chance to pay and inform them that if they don’t, you will be calling a debt collection service. Hopefully, this will encourage them to pay the full amount right away.

4.  Cut Ties With The Customer

So many businesses make the mistake of continuing to deal with customers that don’t pay, but that’s only going to cause you more problems. They will assume that they can get away with not paying and they’ll start taking advantage. It’s not ideal cutting ties with customers, especially when you’re first starting out, but if you keep dealing with customers that don’t pay on time then you’re going to have serious cash flow issues.

How Do You Deal With A Customer That Won’t Pay Their Invoice:  It’s important that you act fast and you take a hard line against customers that won’t pay on time, otherwise, things will spiral out of control and your revenue streams will dry up.


[a contributed post]



Copyright 2016-2019 Who Says What