As a business owner, you are inevitably going to come across a customer that refuses to pay for an item or service. This is far from an ideal situation, but it is something that you just have to deal with. When such a problem arises, there are a few steps you can take to potentially minimize your loss. Follow the tips below to collect money with WePay when a customer won’t pay up.
Start with Kindness
The theory about attracting more flies with honey than vinegar applies to a variety of business situations, including this one. Start by asking the person why he or she is not paying for the item, but do so in a way that makes you sound concerned about the person’s well-being. “Hi Jan. I noticed that you hadn’t paid for this item, and that is not like you. I wanted to make sure everything was okay…” If you use language like that, you might win the customer over with kindness.
Meet Face to Face
An email or text message is not going to be nearly as effective as a face to face meeting. If you cannot schedule that, at least try to contact the customer by phone. People react differently when you speak to them in person because they feel pressured to react. Schedule a time for the person to make a payment, and make sure you reemphasize that plan several times over. That way you know when to call the person back.
Progress with Severity
If the customer continues not to pay for a long stretch of time, you may need to boost the level of your threats. Rather than kindly asking for your money, you can mention that you will take the person to court if you are not paid shortly. Provide the client with your contact information, and send a formal letter to him or her outlining the future consequences. You may just need to find the right threat to make the customer pay up.
Pursue a Lawsuit
Lawsuits are only worth your time if you are owed a substantial amount of money. By the time you factor in court costs and time away from work, you have to be suing for at least $1000 to make this process potentially fruitful. If you are owed a large amount of money, you may want to hire a lawyer to handle your claim. He or she will ensure that you are prepared for the case. Go about the court proceedings for your area, and hopefully you will end up with a verdict in your favor.
Matters like these are an unfortunate reality when doing business, but try not to dwell on them when they occur. Keep this matter between you and the customer as long as possible, and then you can go through legal procedures if they are worth your time. Publicizing it or complaining on the Internet just leads to worse scenarios.
Keep in mind that sometimes you simply will never see the money. This is the cost of doing business and one every entrepreneur faces at one time or another.