I guess that’s a nice way of saying “commencing litigation.” I was relaying the huge amount of outstanding invoices (over $9K) to my husband, who asked why I didn’t have an attorney to chase these things down. Well, probably because I can’t afford one. He questioned that logic, citing that attorneys would typically take a chunk of the payment due as their fee. Sure, but why do I want an attorney biting in to each invoice, which probably averages $900 per? Would I be sending good money after bad?
There are a few alternatives. First, a collection agency. They chase the money for much less, and no amount is too small (consider that one called a relative of mine over, I kid you not, 50 cents). Collection agencies send the letters, make the calls, and secure the payment. What their percentage of collections-to-outstanding bills are, I can’t say. It may be efficient if you have over 2 dozen bills, but will it work for the six or seven I’m holding?
Second, there’s pre-paid legal services. You pay the monthly fee and you secure the services of an attorney practicing in the area of law you need. It works. I know folks who have used this service on a personal level and have been satisfied with it.
Lastly, there’s the method I’ve used (and one that’s tedious, but effective). I send notice of litigation, give them 10 days, then the plan is to file in small claims court. So far, I’ve not had one filing as the warning was enough.
Do you know of another way for freelancers and small business owners in general to collect on unpaid invoices? What’s your process? How has it worked for you?
Begging, whining, pleading? I don’t know. I’m just here to add to the ignorance because for the first time in decades I’m facing a similar problem. The client is a large group, part of a major national organization. It’s been two months. I’ve invoiced. I’ve called. I don’t want to threaten litigation, though, because they first approached me looking for an “on call” editor for regular work. Sigh!
Thanks for the opportunity to vent.
That’s the toughest situation imaginable, isn’t it? Yet think of it this way – the stress involved in one job with them is going to continue should you continue to work with them.
I’m about to call this client, as well. I don’t think it will get me anywhere. A mailed invoice hasn’t moved them. If I have to, I’ll contact their accounting department to see how this invoice gets paid and if there are steps we can take to avoid litigation. If the contact person isn’t willing to listen to reason, perhaps the person paying the bills would like to avoid additional payments or issues…
You know, it’s just so sad that this even needs to be a topic for discussion. But I really apreciate you for educating us about our options if faced with these circumstances.