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I have a payment problem, what should I do?

I have a payment problem, what should I do?

All freelancers have known or will one day have to deal with a bad payer. For small businesses or auto-entrepreneurs, late payments and unpaid debts can have a considerable impact on their financial health, and even on their existence.

How can you guard against these problems? What are the procedures to adopt? You will see that the procedures can be long and complex.

The best thing is to anticipate and use the appropriate tools to never experience this kind of situation.

1/ Protect yourself

In order to prove the existence of an agreement between your client and you, it is essential to have documents attesting to this agreement.

- Before starting a mission, you must prepare an estimate/contract and have it validated by your client. Each of you will keep a copy and you will keep the original. An estimate must include certain mandatory information and be as exhaustive as possible in order to best define the scope of your mission.

- Ask for a deposit. As a general rule, the amount of the deposit is 30% of the total amount of the service. In addition to proving your client's good faith, it constitutes proof of your agreement.

- If you think that a contract is essential, we advise you to call on a lawyer who will be able to advise you best. It is an investment but it can be profitable!

- We recommend that you use the SPAYCE appli cation as a means of payment, and specify it in the payment terms of your quote. SPAYCE allows you to be sure that your payments will arrive on time. You send your files through the Spayce app, and your customer has to pay to get them back. This is the most efficient method to secure your payments.

- Keep all the proof of your agreement and your exchanges.

2/ Payment deadlines

As mentioned above, we advise you to define your payment terms in advance. This will allow you to protect yourself against non-payment and to be completely transparent with your customer.

Attention, the deadline must not exceed 60 days after the date of issue of the invoice.

For installment payments, set payment dates in advance and plan to issue invoices for each payment.

If you have not agreed on a deadline, the law specifies that the payment is fixed at 30 days after the date of performance of the service. That is, 30 days after the issue of the invoice.

3/ Alert the customer

That's it, the deadline has passed. The dreaded moment has arrived. Nobody likes to come to this, but you've worked and you need to get paid for it. Above all, don't let the situation drag on.

- First start by contacting the customer by phone. Maybe he had a problem or just forgot? Give him the benefit of the doubt... Amicable solutions are the best.

- Be careful, however, not to let yourself be lulled by justifications and blabla.

- Make a first follow-up by mail or email.

- No answer ? No effect ?

Proceed to send a second amicable follow-up letter by registered mail with acknowledgment of receipt, which will serve as a warning.

- The customer does not want to hear anything? He still does not want to pay the bill despite the attempt to recover amicably?

Send a letter of formal notice, always by registered mail with acknowledgment of receipt, specifying that payment must be made within 15 days. Otherwise, you will initiate legal proceedings.

The letter of formal notice must contain certain mandatory information.

4/ Recovery

The collection procedure is quite complex: order to pay, interim relief, summons to pay, debt collection by bailiff, etc.

In order to guarantee the best execution of the recovery process, we advise you to contact your lawyer.

As a general rule, a lawyer's letter to your client will get things moving. If not, he will be able to guide you and advise you as well as possible.

Ready to Start ?

Avoid late payments and unpaid bills with Spayce.