How To Collect Money Clients Owe You

Don’t give up when a client fails to pay you — take appropriate means to recover your money

Clients failing to pay for your services is a problem every farrier experiences at some point. There are a variety of cases and reasons as to why they fail to do so. By understanding the United States government’s definitions of non-payments and reviewing the basics for collecting, you can be better prepared for making sure more of the money you earn gets to your pocket.

Unpaid Invoices

Each day, millions of small businesses are getting stiffed or are not paid on time. In fact, according to the National Federation of Independent Businesses, slow or late payments are the most significant issue businesses encounter when it comes to getting the money they’re rightfully owed.

Like most small business owners, dealing with late payments is not your specialty. Constantly letting late payments slide makes you look bad, is unprofessional and financially hurts you and your family. When you do this, you are essentially providing no-interest financing to your customers.

There are three ways to demand payment on unpaid invoices or bills.

  1. Send a collection letter requesting payment on the unpaid invoice. Sample collection letters can be easily found on the Internet, as well as in many business supply stores.
  2. You can collect debts by hiring an attorney or use a collection agency.
  3. Sue the offender in your state’s small claims court. Follow the ensuing procedure discussed in the bad check collection section.

The latter two, especially the second, have costs associated with them, so make sure the probable sum you recover exceeds…

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Esco Buff

Esco Buff, CF, APF, of Webster, N.Y., holds a PhD in business administration and is a member of the International Horseshoeing Hall Of Fame.

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