For many side hustles that us young professionals have, we provide a service that we are then compensated for. Whether this is something very efficient and official like driving for Uber, or perhaps less formal like cutting a neighborhood yard or dog walking or as a landlord trying to collect rent from tenants, sometimes it can be challenging to deal with clients that simply refuse to pay you. Perhaps these clients are just struggling with their own financial situation, maybe they’ve forgotten, or are just being difficult. Dealing with a case like this for the first time can be daunting, but as you get used to dealing with frustrating clients, it can become second nature to deal with them.

Whether you’re running your own small business, working as a landlord or are working a side hustle and running into collection issues, follow these tips to make sure you’re paid what you’re owed!

Deal with it in a polite manner first

Some advice I got growing up that’s always stuck with me is that often the best way to get what you want is to be overly polite with people. So, make sure you give your client a chance to explain themselves or deal with it in a civilized manner. Speak to them and ask about the late payments. If they’re understanding or have a perfectly acceptable reason, then it’s fine to let them off for the first time. However, if this leads to conflict almost immediately, then it might be time to put your foot down and rely on your contract. If a client has breached your contract, lease or payment terms, then you can resort to adding late payment fees, especially if the client has repeatedly done this in the past. Be nice, then be very firm. You don’t want them making a habit of it!

Immediately stop working or refuse to offer the completed work

It’s important to stop working immediately until your client offers your payment. Depending on the payment terms you’ve agreed on, you can also refuse to offer them the completed work if they’re not paying you. In terms of drafting payment terms, you should always ask for some of the money upfront to pay for larger projects or to pay for materials needed in the process. The larger the project, the more money you should ask for.

In addition, if you’ve never worked with the client before, then you can ask for a larger percentage of the deposit as a guarantee. When submitting the work to be reviewed by the client, always ensure that there is some kind of watermark to determine that it’s not the final product. This will prevent the client from taking this work and running off without paying the rest of your fee.

If you’re a landlord, this may result in considering the eviction process, depending on how late the tenant is on payment. It’s not an option many landlords enjoy thinking about, but it’s certainly something you must do as a small business owner – protect your business!

Get in touch with a collection agency

Certainly a last resort to consider, but collection agencies can be used if you simply don’t have time to deal with the client and their excuses. After exhausting all of your efforts, and if the amount is large enough, it may be worth considering. It can be an effective way to ensure that you’ll eventually be paid, even if your payment does come a bit later due to the collection process. Of course do a little research on any collection agency as some have a very bad reputation. Don’t make your clients’ life miserable!

Make sure you never let these clients off when they refuse to pay you on time. As a business or side hustle, it’s your responsibility to pick clients that you want to work with. If someone repeatedly fails to pay you on time, then it’s time to cut the contract and move on to find newer clients that will respect your hard work.

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