Effective Tips in Dealing with Non-Paying Customers

Effective Tips in Dealing with Non-Paying Customers

In your construction experience, not all customers pay within a reasonable time. Others will either put off paying time or simply refuse to pay. When this happens, how will you react? What are your options? Or what are you going to do?

In this article, you will know everything you need. Are you ready? Take a look at the following:

Why Are Customers Not Always Right?

As a builder, you work on your reputation and dealing with late-paying or non-paying customers can be hard. Of course, there are reasons why customers won’t pay. You have to be clear about these things before taking action. Well, prevention is better than cure. Also, there are options that suit your situation. London Mediation4Builders

Rogue Customers

Imagine you have spent weeks purchasing materials and completing the project. When the job is done, you send invoice without a response. You follow up and still can’t find the client who owes you a hundred dollars. Sometimes, the customers won’t respond to your calls. You are lucky when you get hold of them. But you would only hear their excuses.

This kind of scenario is no longer new. As a matter of fact, many builders out there experience the same thing. So, you are not alone.

Get It In Writing

Before you start the construction, create a contract for the job. Yes, it’s time-consuming, but it could save you hours of stress and money in the long run. You could seek help from a professional to help you write the contract.

Making an agreement with your customer including the cost and the process is a sure way of ensuring fewer problems in the future. Plus, you can expect timely payment. If you can’t afford to hire a specialist, take advantage of templates available online. There are different formats you would love.

Do Initial Credit Checks

With the number of building services, customers do their research. Before they make a decision, they weigh reviews, reputation, solutions, team, and price in mind. As a builder, why don’t you do the same thing?

Every time you enter into a business relationship with your clients, you should know their background. Identifying their credit checks would give you an idea of their paying capability. Even though it is time-consuming, it’s worth the effort.

Don’t Forget To Be Consistent

Regardless of the kind of service you offer, whether you engage in building or construction industry, you have to be consistent in what you do. For instance, when you say you would invoice, do it. Also, bear in mind that invoices are clear and thorough. Don’t give your clients an excuse not to pay.

In case a customer does not pay, follow up on a regular basis. Do this for weeks, and surely you would get the money. You could also keep a contact log, record phone calls, and other information for future’s reference.

Things You Cannot Do

Non-payment can be frustrating. Sometimes, you might overstep the mark. Control yourself because it could hinder your chances of getting the payment. Well, there are laws that can protect you. But never do things that would affect your right.

Of course, you are entitled to chase up your clients for payment. However, don’t harass them. Make sure to call them at reasonable hours. Never resort to threats and don’t use third party bailiffs. Always be calm.

If you have accounts on social media sites, do not shame your clients. It’s best to talk to them in person. Although they are unprofessional, you have to treat them with integrity and commitment.

See Them In Court

Going to court is your last option. Even though it is not ideal because of the tiring and expensive process, you don’t have a choice. Entrust your problem to your lawyer. Give all necessary documents, including the contract, well-kept records, a contact log, etc.

Yes, it’s hard. Not only do you need to invest your time, but you also waste your money. However, fighting until you get the payment for your service and loss would teach your customers a lesson.

There you have it! For other pieces of advice, rely on and trust a professional. Just choose the one with an excellent reputation for your comfort!