The nicest thing about working for yourself is that you get paid! What happens, though, if you are not paid on time? Unfortunately, virtually every company will face this at some point in the future. Collecting payment for process servers, many of whom operate as independent contractors, can be challenging. Continue reading to discover the most effective methods for dealing with overdue payments and past-due bills.
When at all possible, collect payment in advance
The simplest approach to deal with a past due account is to avoid it becoming delinquent in the first place. There are a few precautions you may use to avoid this. The first is to obtain money in advance. This guarantees that you will be compensated for your services and that you will not be left owing money and time.
If you can’t get full payment up front, especially for large tasks or new clients, you might ask for a deposit or partial payment. By requesting a portion of the money up front, you and your customer share the risk, making it less likely that either of you will fail to fulfill your obligations.
Include a past due remedy in the contract
Include a clause in your service agreement or contract before you begin working for a customer that clearly outlines what will happen if a payment is late. When you’re dealing with a client who isn’t paying their bill on time, you’ll be able to go back to those previously agreed-upon terms. Whether those conditions include a late payment fee, a provision for legal expenses if a court appearance is required, or a percentage increase, this may be an option that can help account holders avoid late payments.
Invoicing and reminders that are clear and on time
It’s critical that your clients can read and comprehend the bills you send them – and that they arrive on time. Stay on top of invoicing if your system isn’t automatic enough to send out an invoice as soon as work is finished. Make your payment conditions on the invoice easy to discover and understand so there’s no confusion about what payment amount is required for what services and when.
Make alternative payments available
You will enhance your clients’ capacity to pay by providing them with more payment options. If you only accept cash or checks, you may find it difficult to be paid. Allowing extra payment options (online, credit card, ACH payment through a bank) can not only make things easier for your consumers, but it may also improve your chances of getting paid on time.
Small claims or collections as a last resort
If everything else fails and you’ve lost a lot of money, it could be worth it to send your customer to collections or take them to small claims court to get the money back. At AAA Attorney Services we can help process serve if necessary. If you cannot find them, we can help via skip tracing – even if you believe they have left Los Angeles CA. Call us now at (213) 746-8010 to get started.