Client refusing payment

[nolanola]

I'm seeking advice here on what is common practice. We have produced and installed a sign for a client to the specifications that they requested and collected a 50% deposit on the order up front. Now that the job is complete and the sign has been installed, the client is reluctant to pay the remaining balance on the invoice. What is my best course of action? Have you dealt with this issue? Can we remove the sign since it technically has not been paid for? Thank you in advance for your response.

 

[Texas_Signmaker]

I would start calling and calling and calling and getting aggressive. Tell them if it's not paid by tomorrow you will be filing a lawsuit at the courthouse. People will respond to aggressive collections. Don't feel bad about being aggressive either.

 

[Geneva Olson]

man. i hate a thief

 

[Solventinkjet]

Be careful taking or damaging the sign in any way before talking to a lawyer. Usually when a car is repossessed there's either a court order or it was part of a signed contract that the bank would repossess after a certain amount of missed payments. Unless you have a specific clause in your contract, it's not as easy as just showing up and taking it. Also, you can hound them for a while but if they don't respond, you might just have to take a hit and get a collection agency on him. They take a hefty cut but it's better than nothing.

 

[Scotchbrite]

I was told that you can't legally remove a sign without permission regardless whether they paid in full for it.

 

[garyroy]

I'm no lawyer but if you remove it you are in for big trouble. Don't do it.
We live in a country of laws. If they don't pay, based on the amount of the claim, take them to court.
First send them a demand letter, certified. The judge will ask if you did that. Keep the certified receipt.
If it's small claims, usually less than $2000 (depends a lot on your state and county) then you can file the claim yourself
and meet them before the judge. Get pictures, bring emails, agreements, anything you can. If you have a case and the judge is fair,
you can easily win. If they don't show up, you the plaintiff win the case by default.
If they still refuse to pay after you win, you can go to a sheriff with a copy of their last check.
If they have money in that account, he can get the bank to withdraw your judgement and give you the check.
It's a long process, it doesn't always go the way you think it should, but man, it's the education your parents couldn't afford to buy you.
You'll learn to read people and future customers real fast. "People, the toughest business in the world".

BTW, how much do they owe you? How big was the sign? Give us some deets.

 

[Signscorp]

I would say that it's our policy to send outstanding installation bills to collections after X number of days. That's always worked for me. then you really can sell it to collections if you want, but nobody wants to get hounded by those guys so usually they just pay.

 

[gnubler]

I'm a year and a half in business and have yet to be stiffed like this. Living in a small town may have something to do with that, reputations spread like wildfire.

Someone on the forum once mentioned a black paint job after hours, should no resolution come to pass.

 

[weyandsign]

Are they unsatisfied, don't have the money, or just don't want to pay? Call and tell them you want to see about getting the invoice paid and ask for a credit card number. You should eventually get paid.

 

[Stacey K]

I had a guy like this once. Restaurant business and didn't have the money. I went to the restaurant, took a deep breath, sat down at the bar and said in a friendly tone, "Hi Nick! I'm here to pick up my check." He said he would mail it...I said, "Nope, I'll take it now, I'll wait." There was a bar full of people and I got my check. Depending on what kind of business it is, public shaming works well. Nobody wants to look like a loser in front of customers. Funny thing is he turned into my second biggest customer. Never asks prices, just places orders...and he pays now!

 

[Hahnprinting]

Has he given a reason for non payment?
Quality, workmanship, or installation issues?

What type of sign? What is the remaining balance?

I would think you would be treading on very thin ice if you went and removed the sign.
Trespassing, would be one thing that comes to mind.

 

[Medina Signs]

I like the customer who is always slow to pay until he needs another job - anyone ever run across this?

 

[Gino]

There are quite a few details missing. However, once a sign is installed, it is by law, their sign. You would be in for countless offenses. Collecting the monies is a different matter.

* How big is the sign ??
* What kinda sign ??
* Balance due ??
* How long is it overdue ??
* What is the reasons, if any, they are refusing payment ??

We've all been here/done this. I have one myself right now, that owes a balance of around $6,200 and is finding all kindsa excuses not to pay. I think I'll remind her what's going on.

 

[Boudica]

I had a guy like this once. Restaurant business and didn't have the money. I went to the restaurant, took a deep breath, sat down at the bar and said in a friendly tone, "Hi Nick! I'm here to pick up my check." He said he would mail it...I said, "Nope, I'll take it now, I'll wait." There was a bar full of people and I got my check. Depending on what kind of business it is, public shaming works well. Nobody wants to look like a loser in front of customers. Funny thing is he turned into my second biggest customer. Never asks prices, just places orders...and he pays now!

I remember you sharing this before. Well done!

 

[unclebun]

There's always a mechanic's lien...

 

[CanuckSigns]

I like the customer who is always slow to pay until he needs another job - anyone ever run across this?

Lol we have a few clients like this, I feel like a psychic because I can always tell when they are about to place an order, a cheque always magically appears in the mail a few days before their next order.

 

[Solventinkjet]

We simply stopped giving people terms. For smaller items like parts and vinyl, nothing leaves the building without full payment. With printers, it's 50% upfront and 50% at install. We don't leave the install without payment. There's really no use for terms anymore when money can be transferred instantly.

 

[StarSign]

Balance due in cash. checks can bounce and credit card charges can be disputed.

 

[Solventinkjet]

Balance due in cash. checks can bounce and credit card charges can be disputed.

I agree but if you need to take credit cards, a rock solid return and refund policy is key. I've won a bunch of charge backs simply because we are very clear about what our policy is.

 

[gnubler]

We don't leave the install without payment.

I seldom have installs where this would work, anyone else? Most customers (or the check writers) aren't even around for some or all of the installation, and in a lot of cases I adjust the final invoice depending on actual labor hours and then email it the next day. Vast majority of my customers write checks, especially on bigger jobs.