I am just getting started, my site will not be LIVE until October. I just wanted to hear if anyone had come across clients who just don't want to pay and if the contracts & Paypal protect you or if you have lost money in addition to your time?


Thanks!

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Kathleen Marquez, MBA
A Marq Above VA & Professional Services | Personal Concierge

Kathleen,

If you collect a deposit when the contract is signed this usually eliminates the problem with non-payment.

A good contract which includes non-payment penalties, timeline to terminate the contract and the upfront requirement for a deposit will make your life so much easier.

We talk about this often here on VAF in various categories such as the Rates and Billing, Business Development and New Client Best Practices.

Good Luck!

Janine

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Get the contract and get the deposit. Those two pieces of advice will save you in the end. Also, do not let invoices go stale. Meaning if your terms are net 10, then on the 10th day notify the client if no payment is received. And if they go longer than that, stop working until it is paid. Often times we as VAs continue to work without payment getting yourself deeper in the hole.

If a client has not paid by the 10th day I notify them that they have an invoice now due and if payment is not received within 5 days all work on the account will cease until payment is received. It may sound harsh but I have only had one deadbeat client and I learned my lesson. I get all my receivables on time now and no one complains.

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Lee Drozak
My Office Assistant

I have the same policies as Janine and Lee. A signed contract and deposit upfront, net 10 days on the invoice, and work stops if a payment is 5 days late. I also have late fees built into my contract so that on day 11 they get a late charge and I start adding interest at day 30. (I waive the late fee if I receive payment by day 15, and so far I have never been paid past day 15.)

In addition, if they are late 3 times within 6 months, i require an upfront deposit each month from that point forward. I had one client that ended up in that position and he went out of business less than 6 months later. Due to my pre-pay policy, I was not left unpaid, although I know some of his vendors were...

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thank you everyone! I am working my way through all the threads and found so many helpful policies!

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Kathleen Marquez, MBA
A Marq Above VA & Professional Services | Personal Concierge

I have rarely required a deposit and in the over 15 years I've been in business I've only been stiffed once for $25. I deal with mostly medium to large businesses, which I think does make a difference. And usually those businesses can't (or won't) work with deposits. (And I'd say about 95% of my clients are local.) I do have an agreement and specify payment requirements in that, including that a deposit may be required for one-time projects or new clients when the job is estimated over a certain dollar amount.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

Originally Posted by The Perfect Word

I deal with mostly medium to large businesses, which I think does make a difference.

I think you nailed that one on the head! I work primarily with solos and they are often not super reliable with their payments. Thus, the deposit policy was born.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thanks! It is food for thought. I hate having a couple policies in place. But I can see how that gives you flexibility and protection.

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Kathleen Marquez, MBA
A Marq Above VA & Professional Services | Personal Concierge