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INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Joseph Meuse.
Price and Meuse discuss the growing problem of clients that are slow to pay or simply won’t or can’t pay. Meuse discusses practical — real world — strategies.
Dealing with a client who owes you money and isn’t paying can be frustrating and challenging. Here are steps you can take to try to resolve the situation:
Communication is Key:
Start by sending a polite and professional reminder email or letter. Clearly state the amount owed, the services or products provided, and the agreed-upon payment terms.
Follow Up:
If you don’t receive a response, follow up with additional reminders. Be persistent but remain professional.
Phone Call:
If emails don’t yield results, consider making a phone call. A conversation can often be more effective in resolving misunderstandings.
Review the Contract:
Go over the contract or agreement you had with the client. Make sure that the terms and conditions are clear and that you have documentation to support your claim.
Offer Flexible Payment Options:
If the client is facing financial difficulties, consider offering a payment plan. This can help them meet their obligations without causing undue hardship.
Late Fees and Penalties:
If specified in your contract, apply late fees for overdue payments. This can serve as an additional incentive for the client to pay promptly.
Send a Formal Demand Letter:
If your attempts at communication have been ignored, send a formal demand letter. This letter should outline the debt, demand payment, and set a deadline for response.
Consider Mediation or Arbitration:
If all else fails, consider using a third-party mediator or arbitrator. They can help facilitate a resolution without the need for legal action.
Small Claims Court:
If the amount owed falls within the limits, consider taking the matter to small claims court. This process is designed for resolving disputes without the need for expensive legal representation.
Consult an Attorney:
If the debt is substantial or if other methods have failed, consult with an attorney. They can provide legal advice and guide you through the process of taking legal action.
Credit Reporting Agencies:
If the debt remains unpaid and significantly impacts your business, you may consider reporting it to credit agencies. However, be aware of the legalities and ethical considerations surrounding this action.
Write Off the Debt:
In some cases, it may be more practical to write off the debt as a loss for tax purposes. Consult with a financial advisor to understand the implications.
Make sure, in whatever a business owner does, to get someone on their team to be the ones to communicate with the client — not the owner.
Remember, it’s crucial to remain professional and polite throughout this process. Avoid aggressive or confrontational behavior, as it can escalate the situation and potentially harm your professional reputation.
After years on Wall Street, Joseph Meuse created Business GPS because he was looking to use his experience and business acumen to help struggling businesses. Enter COVID-19, and his company is helping hundreds of businesses get government loans, decrease their commercial rental payments, negotiate their loans to better terms – all on contingency. It is a unique business model, where Business GPS gets paid at the end of the process.
A serial entrepreneur over the past 30 years, Mr. Meuse has started and built over a dozen successful businesses and in the process has also helped thousands of other US companies execute on their business plans. Sectors of experience span financial services, investment banking, accounting and finance, IT, business consulting and legal services, giving Joe a broad perspective on best business practices and how they can be most effectively transferred across categories. As a thought leader in business transformation and financial management, Mr. Meuse has been a regular contributor on TV and radio, including CNN, CNBC and Fox.
Learn more at https://businessgpsllc.com/.
LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE
