Protecting Your Business

Signs your client is not going to pay

On Behalf of | Apr 29, 2024 | Commercial Collections |

As a business owner, you rely on timely and complete payments from your clients to meet your own financial obligations. When you have provided goods or services but have not received payment, it is reasonable to become concerned.

By being vigilant and proactive in recognizing these signs, you can minimize the risk of non-payment and protect your business from preventable losses.

1. Lack of communication

One of the first signs of trouble is a lack of communication from your client. If they stop responding to your emails or calls regarding payment, it could indicate that they are avoiding the issue.

2. Excuses and delays

Another red flag is when your client consistently makes excuses or delays payment. They might claim they are waiting for funds to become available or that there was an unexpected issue with their payment method. While occasional delays can be understandable, repeated excuses should raise concerns.

3. Changing terms or disputing invoices

If your client suddenly starts challenging invoices or requesting alterations to previously agreed-upon terms, it could be a sign that they are trying to avoid payment altogether. They may be looking for reasons to justify withholding payment or negotiating for a lower amount.

4. Financial instability

Watch for signs of financial instability from your client, such as layoffs, bankruptcy filings or consistently late payments to other vendors. These may be warning signs that they might not be able to fulfill their payment obligations to you.

5. Refusal to sign contracts or agreements

If your client refuses to sign contracts or agreements outlining the terms of payment, it could indicate that they have no intention of honoring their financial commitments. Without a signed agreement, you may have little recourse if they fail to pay.

If you notice any of these red flags, it is wise to seek debt collection guidance from an experienced commercial collections attorney to protect your business.