Business Tip: How to Manage Late Payments or Unpaid Invoices

Many contractors and construction companies deal with late payments and unpaid invoices – they will get paid late or not in the full amount. Like with most businesses, it is essential to have this money on time to run your business as a whole. With late or unpaid payments, your business could suffer. Contractors can legally claim their payment for work that was done.

Late or unpaid payments can affect the way your business is run and if your employees get paid. You might not be able to improve the equipment or tools you use if clients don’t pay on time.

So, how should you deal and manage payment issues?

• Let clients know you have late payment fees upfront.
  • You could start with a 2 percent penalty if the client doesn’t pay within 30 days.
• Review the signed agreement with the client.
  • A contract secures your legal rights and helps with the payment. Review this before the project begins.
• Start negotiating with the client.
  • Discuss concerns with the client. Ask why you aren’t receiving the payment. Come up with a plan for them to settle their debt with you.
• Agree upon a fixed payment schedule.
  • With a schedule, you are listing an exact date payment is due. Both parties must agree.
• Document invoices and other documents.
  • With the right paperwork, you can keep track of what is owed and what has been paid.
• Stay in good communication
  • Always stay on top of communicating with everyone you work with for less mishaps.
• Take the client to court if client continues to not pay.
  • Don’t hesitate to go to court. If the client won’t pay or negotiate, it’s time for a law expert to step in.

How to Get Your Contractor’s License

Working as a contractor is an exciting and rewarding career, but it can be stressful when clients don’t hold up their end of the bargain. If you follow the tips above, getting your money on time will be easier.

Need a contractor’s license? We can help get you licensed. We are a Florida contractor licensing company. To start the application process, you will provide us information about yourself, your skills, your background, your testing results, your education, your job experience, etc. We will submit a correct and completed application to the Construction Licensing Board on your behalf.

To get your Florida contractor license or other state contractor license, click our contractor’s license page to learn more or call 239-777-1028 to get started with us.