Debt Collecting Q & A – Issue #2

Dear Jim –

I have a client who, for the most part, is an excellent customer. However, I've run into a problem. He has refused to pay a $7,500 bill, claiming that they had to hire someone else to re-do the work we did for them. I've spent a great deal of time developing this relationship and I don't want to end it. On the other hand, I don't want to be looked on as an easy mark and get taken. What should I do?

Ticked Off in Jersey

Dear Ticked Off,

This does not sound like a case of someone taking your services and then claiming they don't have the money to pay you. It's important to be able to recognize the difference between a genuinely disputed bill and someone who is deliberately trying to rip you off. This appears to be a quality client, the kind you want to keep and nurture. I'm guessing that your business relationship with this client has resulted in a lot more income for you than the $7500 in question. Put your experience and business skills to work here and ask yourself some questions:

Is the client a repeat customer?
How long have you had this client?
Have they paid on time in the past?
Have they given you referrals?
Can you see their side in this dispute?
How much money is involved?
Is losing that amount worth saving the relationship?
Is the client likely to give you more work in the future?
High much might the client be worth to you in the future?

Find out what caused the misunderstanding. Maybe someone messed up on your end. Calmly and clearly communicate your position to the client. Be polite! Don't push. Seek information, not confrontation. If no understanding can be reached, forget about the money and don't bring up the subject again. If you see the client as being a big part of your future you may want to forgive the debt without any further inquiry on your part. Instead, send them a large box of candy and a pair of tickets to the theater or a ball game.