Non-Payment by a Customer

[ekal]

Hi All

I have a question to ask those of you in the business professionally.... How do you deal with non-paying clients?

I have a customer in the neigboring U.S. state is owes us over $1500. Its not a bank-breaking amoung of money but definitely worth putting quite a bit of effort into collecting.

The customer stopped answering e-mail and phone calls over 3 months ago so the invoices are over 100 days past due.

How should we approach this? Call a lawyer? Take their site down that we built for them?

Thanks in advance

[The Contractor]

Contact a lawyer or give it up...I may take down their site since you own it.

Take their site down that we built for them?

Why did you put it up in the first place? I would never upload the site to their domain without final payment (I do "very specific work so it involves people from many countries on a regular basis) ...I know others may feel differently, but I always state site will be transferred within 24 hours of final payment. Always build out on a domain of yours and then download, do quick Search and Replace, then upload (even databases are easy enough to do).

It's not a guarantee that the site can't be ripped/downloaded even if built behind a password protected area, but you should be able to weed out those types before you start.

[ekal]

Thanks for the quick reply.

We went against our normal way of working. It started off as just a job installing a CMS on their domain and grew from there.

[LifeinAsia]

What are the specific terms of your contract with them, specifically in regards to accounts past due? Follow them to the letter.

[topguy29]

I agree, I would never have given them the completed product. When you buy items over the internet, the company expects to have the money at the time of shipping.

That should not be different when a website goes live. You have been more then lenient. Of course as stated, it depends on the contract but I have to assume that you expected to get paid

[celgins]

1) I would start by sending them an email/written letter stating that their account will be turned over to a collection agency if they do not pay your fee.

2) If you still do not hear from them, send the same letter again with a more stern warning.

3) If you still do not hear from them, make the move to contact a collection agency or a lawyer.

Many businesses will give up the money after the first threat of going through a collection agency. Those that won't, need to be challenged legally.