Client refusing payment

[CanuckSigns]

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.

Yup, I see this quite frequently here, people claiming to never give credit etc. I assume they only deal with other small businesses, I assume Fred's Plumbing will pay you when they pick up their order, but I doubt you are going to get a cheque on completion from Coca-Cola, General motors etc.

 

[Solventinkjet]

Yup, I see this quite frequently here, people claiming to never give credit etc. I assume they only deal with other small businesses, I assume Fred's Plumbing will pay you when they pick up their order, but I doubt you are going to get a cheque on completion from Coca-Cola, General motors etc.

Maybe it's just different for signs, we're installing printers, but I deal with people working out of their basement all the way up to military bases. If they have financing, we don't leave until we have the sign off to release the funds. If they don't have financing, we don't leave without payment. If they say the guy who writes the checks isn't here today, we say call him. We make it very clear in the email we send to prepare for the installs that we expect payment at the end. If they have problems with that, they usually bring them up before the install. But like I said, it just might be we deal with different types of customers.

 

[davison]

I would go with the Mechanic's Lien - A mechanic's lien is also known as an artisan's lien or a materialmen's lien.

 

[Scotchbrite]

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!

We had to do that once to a barber shop. The customer called the office to scream and curse about it. Funny thing is we've done other work for him since. We just make him pay up front. Actually the last time his landlord paid it for him.

In the 22 years I've been here, I think we've probably sent fewer than a dozen people to collections and written off maybe 3. I remember only 1 bounced check. I always thought maybe this was normal for sign shops and a side benefit of doing business with other businesses. Maybe we've just been lucky.

 

[Z SIGNS]

You did not say why he did not pay. Maybe he has a legit reason for not paying.
You could always go and remove the sign because after you installed it you discovered something was wrong with the color and you need to take back to shop to fix it.

 

[garyroy]

What happened to the OP.
We can't get any info on what's going on. Size of sign, balance due??
Come on bro, were giving some good feedback, give us something if you can.

 

[Scotchbrite]

Maybe he finally got paid.

 

[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.

I called Tuesday morning and she said everything was submitted, but she'll look into it. Low & behold the check showed up yesterday in the mail.

 

[Boudica]

I called Tuesday morning and she said everything was submitted, but she'll look into it. Low & behold the check showed up yesterday in the mail.

Gino's buying lunch.

 

[Gino]

Gino's buying lunch.

Nope, I just bought a shop vacuum cleaner.

 

[rvolkers]

you make a sign that is big and bold - stating you have been stiffed by the client - attach it to roof of a car or pick-up bed and park in front of his business everyday -- he will pay up fast!

 

[Boudica]

you make a sign that is big and bold - stating you have been stiffed by the client - attach it to roof of a car or pick-up bed and park in front of his business everyday -- he will pay up fast!

And you will look like an A$$ to the rest of the world. that's a terrible suggestion.

 

[Gino]

Oh, I don't know about that. Here's one we put out on our front lawn some years ago. It worked.

 

[Modern Ink Signs]

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.

The biggest thing to me here is the WHY aren’t they paying. Do you have a paper or email trail of proofs/approval/etc?

 

[Gino]

Well 3 new orders today, but not from them.

 

[Eforcer]

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.

There are so many things I would love to do to these non complaint payors. I have send three bad clients a decade ago with a letter stipulating that since payment hasn't been made. You leave me no choice.
To write off this debt, we will use IRS form 1099-A, which will show the IRS that the $X amount became income for you and bad debt for Master Graphic NYC.
If we have not heard from you within 30 days of the date of this letter, we will submit papers to the IRS to initiate action.

2 paid 3rd never heard from them. Later found out they were no longer in business.

You can do this as a last resort. But If they paid 50% down and decided not to pay the rest. They are straight out "SHYSTERS"


Good Luck!




Sign Up!

 

[netsol]

one of our clients retained a collection specialist who used to explainthat there. were 3 kinds of customer, who isn"'t paying

(1) a client who was paying and gets behind or into financial problems ( they will respond to gentle prodding, normally, THERE IS A PROCEDURE FOR THEM)

(2) a client who is disorganized and can not manage the discipline of writing a check onthe15 th of each month (normally responds to letter or email reminder) but intends to pay you

(3) the client who NEVER INTENDED TO PAY YOU, and mailing him his grandson's severed ear will do nothing to change that

 

[RabidOne]

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

Yes, and then we ask for a deposit up front.

 

[appropriate1]

Interesting that you said the customer is "reluctant to pay" and not "refusing to pay." I have been in business for 42 years and lost only $2500, most to bankruptcies, where no one gets paid. Do what you say and when it is due, and there is usually not an issue and if there is, you know it is not you. I've had only three small clients that flat out did not pay, and they are all dead. No, I did not kill them. Anyway, your word "reluctant" tells me that they have some reservation or reason to want to withhold payment and you need to resolve that issue politely and professionally in person, not by mail, yet. If they are brought around to being satisfied, most reasonable business owners are like you and will pay, just as they would want to be paid for their work, whatever it is. Do not take the sign down, unless you would rather have the sign than the other half of your money. It is not legal, anyway and will just escalate any issues if the right to do so was not in your contract. Some contracts do have that removal clause in them. If none of that works, there are all sorts of legal options, and a lawyer will usually send a letter for a small fee and give you advice on options, if it is actually worth it to you. I have sent self-made (internet) legal-looking letters of "intent to file lien" along with copies of the court filing papers ready to go and it got a very quick payment in response. Maybe offer a short payment plan? Be professional and careful with your words and follow through on anything that you threaten, if it comes to that.

 

[visual800]

I love these posts cause they always get me in trouble. go take the sign down TRUST ME they will be calling soon to see whats up. At least you got 50% down so you have some leaway. If your scared to do that tell them you will be blasting them on social media. after 34 years of doing signs i have always repoed and only ONE TIME has an attorney contacted me about removing client sign. he actually called me (they never do that, if its for real they would send certified letter) I called BS! and never heard another word about it. Im not saying this to try and be a hero Im just telling you it aint gonna go that far. It always amazed me how after blasting them on socail media how quick a payment comes. Do with this what you will