For a business owner, unpaid invoices can be very frustrating. Not only that, but a few unpaid invoices can put the business at financial risk.
While you can never be certain, there are some early warning signs that a client may be swerving your invoice. Here are some important factors to consider.
Delayed communication and missed deadlines
One of the first clues is a noticeable change in communication. If your client starts to respond slowly to calls or emails, or if meetings and deadlines are repeatedly missed, it might be a sign they are avoiding payment. Stalling is one of the first signs that a client may be attempting to put off paying the invoice altogether.
With that being said, it’s important not to panic. The client may simply have more questions. Or they may have a temporary cash-flow problem that can be resolved quickly. Keeping lines of communication open is essential and payment issues are often resolved informally this way.
Attempts at late negotiations
Another sign that your invoices could be being swerved is a sudden shift in negotiation tactics. A once cooperative client may suddenly dispute the original terms, request unwarranted discounts or impose new conditions that weren’t part of the initial agreement.
Unfortunately, this is quite common when it comes to settling an invoice. Your contracts must be clear from the outset. Precise terms on what goods or services will be provided and for what price, must be included. You should include key payment dates and potential penalties for missed payments. Sometimes, companies include dispute resolution methods should an issue arise over payment.
When your business carries out the intended services, you are entitled to payment. If an invoice has not been settled, then there are debt collection options open to you. Seek legal guidance to find out more about collection laws.