[consulting] Proper Collections Procedure

[Harry Slaughter]

Michael Haggerty wrote:
> I have a question for other members of this list about how they handle
> collections.

I'm going through the same thing right now. Unfortunately, I'll be going 
to court on this one. While I absolutely agree with everyone here that 
the time/energy drain can outweigh a favorable court judgment quickly, I 
feel it's important to make it crystal clear that payments for services 
rendered are *not* optional. I have a buddy who will sue for amounts as 
small as $100 simply to defend his company's status/reputation.

One piece of operating a business that I've totally avoided until now is 
contracts. I thought I'd be the exception. Now that I know I'm no 
exception, I've contacted a lawyer who's going to help me draw up a 
contract that basically says client will pay for all hours/products 
requested and received. In the event of any dispute, my location will be 
the jurisdiction the case is handled in. Client will further be 
responsible for all attorney costs and time lost for the proceedings.

Naturally that's not the legal jabber required, but you get the idea. He 
told me that the only clients that would protest such a contract would 
be those not worth taking on in the first place. I couldn't agree more.

Lastly, if client is overseas or has no real assets (like a company), 
the contract will likely not do you any good at all and you should 
eliminate as much risk as possible by taking a sizable retainer up front 
and discontinuing work when invoices are not paid on time. Again, if a 
client is not willing to agree to this, he's not worth taking on.

Life's too short. I will not spend my time chasing deadbeats, listening 
to lies and bickering with nitwits.


-- 
Harry Slaughter <-> harry at slaughters.com
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