How Should You Manage A Client's Invoice-Evasiveness?

Collaborative Post

hand-of-a-man-holding-a-bill-with-past-due-stamp

The unfortunate truth is that almost all service-based businesses have met the archetype of client that seems vocal, affable and connected, until the invoice period rolls around. It’s very easy to talk about quotations and work to be completed, it’s quite another to collect from some people when all the service has been rendered.

Now, in some cases a lack of an immediate payment is entirely understandable. Perhaps the work needs some adjustment and that’s covered within your revision or alteration policy. Maybe you’ve given them a number of weeks or months before they have to pay, as can be the norm in the trades, for example.

But not only is it important to encourage clients to pay sooner (cash flow is generally best when balanced, but it’s never hurt by having money more quickly), but understanding how to deal with a problem customer who seems to be evasive now the time is up.

In this post, we’ll discuss how to handle this frustration without losing your professionalism:

Clearly Document Times Of Contact

When a client starts to be evasive around payment time, it’s pretty clear what’s going on. That’s why having a clear record of all your attempts to contact them is very smart, so nothing you do taints your chance to reclaim the funds later on. So, start keeping a detailed log of when you reached out, how (email, phone, text), and what was discussed.

Now, don't just record the date, but note the time and take screenshots of messages or emails sent. If you've had phone conversations, follow up with an email summarizing what was discussed so you have a written record. Something like "As per our conversation today at 2pm, I wanted to confirm that payment for invoice #1234 is now 14 days overdue" which gives you solid documentation.

Clients who are purposefully avoiding payment often use confusion and miscommunication as tactics, like giving you weird responses or pretending they’ve had a family emergency (which you just have to give them the benefit of the doubt on). But if everything is documented, you can be certain of your side if it goes into escalation. This way as soon as you suspect evasiveness, you can make your position clear.

Give Them A Deadline With Escalatory Steps (As Per Your Contract)

With intelligent invoice management you’ll be able to keep track of every single one of your incoming payments or due dates, and so you can grade the steps required here for things to work.

You could send a firm but professional message stating something like: "I've noticed some difficulty in getting invoice #1234 paid. This payment was due on [DATE]. Could you please confirm when we can expect payment? If there are any issues with the service provided, I'd appreciate hearing about them so we can address them promptly."

This approach gives them an opening to raise any oncerns they might have, it shows that you’re being professional, while making it clear you won't be strung along forever. Being direct early often separates clients with genuine issues from those who are simply trying to delay payment, and maybe there is an issue to work out. At the very least you can rule it out before you go further.

Begin The Reclamation Process

At this point, it's wise to lay out consequences to your client, making it clear that this can all be avoided if they just pay. You should gently and professionally remind them of your terms of service and explain exactly what will happen if payment isn't received by a certain date.

Your message might read: "As outlined in our contract (section X), overdue payments may cause a late fee of Y% after 30 days. Additionally, we may need to suspend ongoing services until payment is received.

To avoid these measures, please arrange payment by [DATE]."

Be absolutely certain that any escalation steps you mention are actually covered in your contract or terms of service and don’t make it personal at all even if it is for you and your small business. Empty threats will only undermine your position, but having such clearly defined consequences backed by contractual agreements show you're serious and prepared, and the law will be on your side. Unfortunately, courts see these cases all the time, and outside of them fleeing the country (unlikely) sooner or later you’re likely to have a favorable judgemnet rendered for you, even if it takes them having bailiffs sent by the court.

From there, you can strike them off as a future client and even spread the word. However, make certain you don’t slander them, which is the difference between saying “this person never pays their bills” and “this person didn’t pay our bill.” The latter is a statement of fact and not an insult, no matter how true the former option may be.

With this advice, we hope you can more easily manage a client with invoice-evasiveness syndrome.

—End of Collaborative Post—

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