At one time or another, your staffing service has mostly likely dealt with a client that either pays late or won’t pay at all. Here are our top four tips for dealing with client payment problems.
- Create a standard process. Document and practice a clearly defined protocol for customer payment procedures, applicable interest charges or fees and dates at which these charges will commence. Include this information in client contracts that require a signature.
- Contact the client. Be polite – explain that you have not received payment and ask if it had problems paying. Ask for a time frame in which you will be paid and follow up if you are not paid by this time. If the client expresses money problems, consider breaking the amount into smaller payments.
- Withhold services. If you have a client that consistently pays late or not at all, withhold further staffing services until the balance is up to date. You may also want to create an upfront payment plan with these clients or cut ties completely, depending on the situation.
- Take legal action. If, despite your best efforts, you remain unpaid, consider small claims court for smaller amounts or municipal court for larger amounts.