If you run a business of any kind, chances are you will run into payment issues occasionally. When this happens, and a client can’t or won’t pay up, it can have devastating effects on your business, which is why it is so important you’re able to resolve any disputes as quickly as possible.
It isn’t always easy, but here are some things that can help you to sort out the situation and save your business from sinking due to a lack of ready funds:
Accept Partial payment
Sometimes offering to accept a partial payment for an invoice is a better way of going about things than demanding payment in full. Sometimes, clients simply don’t have their own cash flow sorted to a point where they can pay in full and sometimes they are happy to pay a smaller amount when they dispute part of your work. Getting some money is better than getting none, so at least consider this course of action.
Push for Payment
A lot of companies shy away from pursuing payments because they don’t want to upset clients, but if those clients aren’t paying and they’re in dispute with you, are you really going to want to do more business with them? Keep sending reminders and calling them up until they pay you what you’re owed.
Speak to an Insolvency Expert
If you look at company insolvency and the effects of Carillion on numerous businesses, which have been in the news a lot, you can see it is likely to be a huge financial problem for a whole lot of businesses who are going to find it hard to get payment from the multinational corporation who have recently gone under. In circumstances like this, whether you’re owed money by them or another company in a similar situation, calling in insolvency experts who can help you to chase the money you’re owed is probably your best course of action.
Speak to the CEO
Often, it’s easier to sort out any payment disputes with the head of the company than it is the employees. They tend to be much more reasonable when it comes to such matters, and it can save you a lot of time by going to the top instead of fighting it out with the lower down managers and employees who might not have the same kind of negotiation skills.
Keep Your Cool
You’re less likely to resolve a dispute and get the money your business is owed if you start shouting, screaming and getting personal with the client. If you can keep a cool head, explain your situation and their obligations rationally and be willing to do a little give and take, getting your money is much more likely to happen.
Admit Your Faults
Of course, if someone raises a payment dispute with you, you should always check it out, and if you find they have grounds, you should admit to your mistakes. By doing this, you will hold on to a client and show that you’re an honest, fair business to deal with.
Have you had to deal with payment disputes in the past? How did you sort them out?