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A client can be a person, company, firm who gets services as they ask for only after settling for a particular payment. It is a very common theory that a business runs only when there is sufficient capital to invest in it. So it is very important that a client pay for the service that they have asked for and as promised to pay. It might happen that once the client has received the desired service, they might start ignoring the provider for the payment. This might become very depressing when the provider works day and night for the desired result and the client refuses to pay or starts ignoring. There can be no assurance as to which client would pay or which would start ignoring and refuses to pay later.

There are a lot of businesses which suffer through this problem of non- payment or late payments. So to ensure that such frauds harm the business or the service provider with minimum loss let us take down the note of these 10 tips.

1. Do proper research of your client

When the business suffers loss the foremost thing to do is a proper background check of the client. Check out his history investments, his payments, other projects. One must find out common contacts that might help in getting more information about him getting to know about his intentions.

2. Proper discussions before entering into any contract

Any business deal is a result of a written contract. Any contract formed should always consist of the payment details with the proper and systematical dates of payment. All minute details should be mentioned in the contract before signing it.

3. Sending of invoices

There are lots of task in hand of any business enterprises and it may happen that the provider forgets to send the invoices on time. So it becomes necessary that such invoices should be sent on time and proper records should be maintained so that there is no delay.

4. Keep on sending the summary of work complete in proper interval of time

The management handling the work of the client must keep on sending the updates of the work completed from time to time so that the client is aware that the work is in process as desired by him and he has to make payment as soon as the work get completed. This also works as a proof that the work was in process and was hand over after it got completed.

5. Follow up of the invoices

The proper follow up of the invoices should be made time to time and also take action immediately incase the client stops giving any response and start taking the provider for granted.

6. Keep  documents for every promises and commitments that have been made

All the communication made while discussing the payment of details and other important facts should be either kept in the format of a mail or in a written document so that proper record is maintained that there is a proof which helps in later stages.

7. Polite conversation should be made first

The first step is to ask politely the client to make the payment of the service provided as soon as possible. This would help in maintaining the good old relation with the other party and might help in resolving the issue.

8. Charging of late fees

Once a request is made in a polite manner and yet not made it becomes necessary for the provider to charge late fees so that it does not become a regular habit of the client and also the cover the loss that is faced by the provider due to the non- payment of the fees.

9. The work should be brought to still

If there is no response from the client even after several follow-ups it becomes important for the provider to bring the work in process to still so that the client does not take the provider for grander and also make no future defaults.

10. Decision to take legal action

The last option left with the provider is to take legal action against the client if he not ready to make payment even after several follows made. The provider can either send legal notice to the client informing his intention to approach the court or can directly approach the court and follow the procedure. It is better to send legal notice first so that the client might process the payment in fear of facing legal issues and wasting time and money.

It is very important to understand that as a car cannot run without petrol, in the same way no enterprise can run without capital which is accumulated made by the payment of the client. Proper and timely payment is the right of the provider for providing the desired service. No bad- debtor should be left without  punishing.