Tips for Tradesmen - When Customers Won't Pay - Cobra Financial Solutions Ltd

No-nonsense, straight-talking debt collection service

There are a lot of things to keep track of as a tradesman, and chasing invoices is certainly one of the most time consuming. This is why it’s so tiresome to have a customer who won’t pay. Luckily, there are a few things you can do to encourage a debtor to pay what they owe.

Claim What You Can

There are a lot of reasons as to why a customer won’t pay; perhaps they are hoping to wangle free work or maybe they are struggling with cash flow and can’t afford the payment. When the reason for not paying is something similar to these examples, it’s usually best to engage a debt collection agency. At Cobra Financial Solutions, we can help you to recover the unpaid debt from your customer.

However, if the dispute is about the scope or quality of the work done, you should attempt to claim what you can. You can rightfully demand a portion of the payment, an amount that relates to what was done as agreed. If the customer is unhappy with the quality of the work or they are arguing that you did not fulfil the brief, you can try to reach an agreement that you are both happy with. This could result in part payment for the work done or a discounted payment if the work will remain unfinished.

Keep a Level Head

There is no denying the stress that comes with having a customer who won’t pay. Regardless of how small or large the amount is, a customer that won’t pay creates a whole host of problems. You are likely to feel angry, agitated and unfairly treated. Of course, these feelings are completely understandable, but it’s important to keep a level head when you are communicating with the debtor.

You should aim to keep communication as calm as possible and avoid making any angry threats. It’s unlikely that this will convince the customer to pay. If anything, you run the risk of making them want to withhold payment even more. If you can, remove your materials from the customer’s property and restore things to the pre-work condition. However, avoid destroying your work as a retaliatory gesture.

Engage a Debt Collection Agency

A lot of tradesmen make the mistake of assuming that once a debtor has refused to pay, that there is not much more that can be done. However, all is not lost, and you don’t need to settle for being out of pocket. Though you might struggle to continue on the pursuit yourself – after all, chasing an unpaid invoice or debt can be time consuming when you have a successful business to run – you can enlist the help of a debt collection agency.

Whilst you focus on providing a good service to paying customers, we will work hard to claim back debts owed by others. To find out more about any of our debt collection services, get in touch with our helpful team or give us a call on 0151 526 4222.

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