SMM Client Did Not Pay US

Discussion in 'Growing and Managing a Business' started by lbj23, Jun 27, 2018.

  1. lbj23

    lbj23
    uix_expand uix_collapse
    New Member

    Joined:
    Jun 27, 2018
    Messages:
    1
    Likes Received:
    0
    Hey guys,

    I have recently started my journey of entrepreneurship and own a small social media marketing agency in Orlando Florida. We have about 10 clients right now and it is absolutely amazing! However just recently we have had a client we have been doing work with for 3 months not pay us for the last months worth of work. The invoice total currently is $2,500.00 and we have gotten no response from them. I need some advice on how I should handle this situation with the client. Has anyone gone through this type of situation before?
     
  2. Julia Sta Romana

    Julia Sta Romana
    uix_expand uix_collapse
    Member

    Joined:
    Feb 16, 2017
    Messages:
    41
    Likes Received:
    14
    What were the terms of your contract, if you don't mind me asking.

    Were they supposed to pay every month or every quarter? What penalties can you impose for nonpayment? Is litigation an option for you?
     
  3. allcitycleaning

    allcitycleaning
    uix_expand uix_collapse
    Member

    Joined:
    Jun 30, 2014
    Messages:
    37
    Likes Received:
    5
    I have gone through that. You need to keep working on them but at some point you need to give up and write them off as bad debt. I have tried going through small claims court and the hassle and lack of effectiveness made it just that much more frustrating and expensive. Biggest thing to do in the future is to vet your clients and be selective about who you are willing to work with. As a small cleaning company I understand your pain. Good luck on this.

    Julia
    All City Cleaning Service
     
    • Like Like x 1
  4. Joseph.Shivell

    Joseph.Shivell
    uix_expand uix_collapse
    Active Member

    Joined:
    Oct 8, 2009
    Messages:
    2,659
    Likes Received:
    861
    Unfortunately, as Julia mentioned, you may have to write this one off as a bad debt. In the future, perhaps you can get a credit card up front, and automatically charge the client each month, unless and until they tell you to stop. The company I used to work for did this, and was very successful with it.
     
    • Like Like x 1
  5. StevenF50

    StevenF50
    uix_expand uix_collapse
    Member

    Joined:
    Jan 14, 2010
    Messages:
    67
    Likes Received:
    4
    Try and set up automatic payments in the future. Suspend their services for now and send weekly reminders for a few months to see if they pay. After that, just blacklist and drop them.
     
  6. Matt Tarrant

    Matt Tarrant
    uix_expand uix_collapse
    New Member

    Joined:
    Oct 12, 2018
    Messages:
    4
    Likes Received:
    0
    Joseph & Steven's replies are doubly good because you're getting paid earlier so your cash flow is better.

    Though sometimes having higher receivables is better because it makes your current ratio higher and this is good if you want to get a [word I can't because the system thinks it's spam but it's like "loam" and you often get one from a bank]
     

Share This Page