Often times especially if you are running a business, you come across clients who won’t pay for your products or services. If you are small it will affect your business finances. In such a situation there are some things you need to do to figure out. Lets consider the reasons why clients refuse to pay.
The client does not have money to pay
If the client does not have the money, it doesn’t in any way reflect on you product or service. Now that you know the reason, take it from here with understanding to stabilize your business finances.
Maybe the client can’t pay right now but they can do so later. So handle this situation the right way. Empathize with the client, and tell them that you are willing to put their payment on hold for some time or work out a new payment plan. You will find that the client will be immensely grateful and will go all out to work hard and make the payment.
The client is unhappy with your product or service
There are many instances where you find that though the client chose your product or service out of their own volition, they are unhappy with it. Here too you need to figure out and know why the client is unhappy. Most of time, it will be something that can be easily fixed. If you are honest, open and patient with the client, you can win them over. Explaining that you are a small business and that your business finances will suffer, besides you are willing to go that extra mile to please the client, will do the trick.
The client gets hostile
Don’t think that such unpleasant situations will not arise. When asked to pay up clients can go into a defensive mode and simply ignore whatever explanation you give them regarding their dissatisfaction with your product. If you can rectify the situation do so. Or else let them know that the terms and conditions, as well as your policies were made clear to them before they chose you. So according to rule they will be serviced or product rectified, but payment needs to be made.
The client wants to buy something else
Then there are the most outrageous type of clients. They choose your product, take the order and then refuse to pay because they found something better and want to buy that. The best way to deal with this is to remind them that they are legally obligated to pay your due, and follow up if the due amount is worth the trouble. Otherwise steer clear of these.
In the course of business you come across so many types of clients. The majority do not stall payments, but with those who do, understanding their problems, giving them easy payment options, or responding to and rectifying their complaints will help you recover payments which you thought would never be coming.