Did you know that if you did work for someone and did not get paid- you have officially been played.

Remember 1 thing- a customer who does not pay is not worth doing work for.

A few months ago one of my clients asked me to send a letter of demand to their biggest customer for an outstanding debt of a few hundred thousand Dollars. My concern was that this was their biggest customer who usually did pay- only though often after an unfair delay. It turned out that the financial manager of the big customer had quietly asked my client to send a legal letter so that he could fast-track a payment and encourage management to make this a priority.

Another story.. a client came to me to see how he could structure his forever nagging debtors, he just needed a two week break as he was expecting a massive payment after a cashflow crisis. What did we do? We looked at the very urgent ones first- ie the ones who had sent lawyer’s letters and I made sure that he settled those first. This is what happens in practice, the wheel that makes the most noise, gets the oil.

Before sending a letter of demand, you should have done 2 things:

  1. invoiced
  2. reminded the customer to pay

Once you’ve done these steps, it is fair to now up your stance and turn up the heat. It is not always the case that you’ll burn bridges, a decent customer should understand your position although in practice, you will find that the non-paying customers jump from service provider to service provider leaving a trail of non-paid debt, and a string of service providers who did work in good faith and now have not been paid.

When you can’t make them see the light, make them feel the heat.

Former President Ronald Raegen

This is the crux, suddenly you are no longer a begging service provider but have taken a stand and let your delinquent customer know that you will not stand for delays and excuses. You are in business to offer a good service and make money, so you expect your customers to play ball and pay you.

Servedinc.com is the solution to taking the first step in sending that letter, it takes about 30 seconds and you’re on your way to ‘firing that torpedo!’