Are Payments To You Unduly Delayed by your Clients?
One of my businesses is offering translation services. With the current state of the economy, doing business with small and medium businesses can be difficult because many of these businesses finance part of their operations by delaying payments to their suppliers. This is not an acceptable practice but, unfortunately, it happens more often than not especially when you, as a small supplier, have to deal with one person for the work, and with another (the accountant) for the payment.
When a regular client starts delaying your payments, you have to make a decision: tough it out and wait for long periods before being paid (if you do so, chances are that this trend will remain for good), or try to diplomatically rectify the situation in order to get your payments more promptly. This usually starts with polite inquiries with the people responsible for the payment.
If you contact the client in order to be paid faster, you may encounter one of the following situations:
1. The client cooperates and expedites your payment (unlikely but lucky you if it happens!).
2. You have to contact the client several times and tables start to turn on you, as you become the perceived “harasser” (not a pleasant feeling). You will most likely be given a vague time for the payment, or you are given dates that are not met. After many phone calls and notices, you finally get a late payment or you are not told when the payment is going to be made and you still get it late. (Not pleasant either!).
3. You deal with an accountant who reigns on the business finances and gives you no cooperation whatsoever and tells you that you simply will be paid at the end of the month (and they don’t necessarily mean the current month).
4. You aggravate the client and he/she decides to do business with someone else.
5. You find a diplomatic way to solve the problem and have to do it all over again every time you deliver the work.
6. You find a diplomatic way to solve the problem once and for all.
Personally, I tend to favor the last option. Here is how I did it recently, when one of my good clients started delaying several payments. After a few invoices were paid more than 2 months after the delivery of the work (and I have to add an additional delay for the bank to clear the check), I decided to send out a little note to my client (not the accountant) that read as follows:
“Dear (name withheld),
I just need to let you know that I have to adjust my work schedule to ensure a timely revenue stream.
Since I know that your company will pay me for my work only in two months, if that is okay with you, I will schedule the larger document that I currently have on hand to translate for later this month. I am sure that you understand that no landlord or supermarket is giving me that kind of deferral, and I have to make sure to survive in this tough economy.
If that does not suit your timeline, please let me know as soon as possible, so I can make the necessary adjustments to my schedule.
Thank you and best regards…”
The result was that I received notice the very next day that new arrangements were taken and I could receive Paypal payments instead of checks. I did not have to contact the client: the client contacted me. Where before they were sending checks 2 months later, the payment is now made with PayPal on the day following my delivery of the work.
Always remember that you deserve a prompt payment for the high-quality work that you deliver promptly. This is to underline the importance of diplomacy and doing business with the right person. Being an entrepreneur means being solution-oriented and creative in all areas!
This BLOG is originally published by Danielle Vallee at http://blog.whizventures.com

Job Creation and Small Business Blog by Danielle Vallee at www.WhizVentures.com is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at blog.whizventures.com.
