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Why do people fail to pay for services?

On Behalf of | Nov 12, 2020 | Business |

You run a company that provides a service, such as a contracting company that builds residential homes or a remodeling company that improves existing homes. Every now and then, someone fails to pay. This can be very detrimental to your financial future, and it can make budgeting nearly impossible.

You want to know what debt collection options you have, of course, but it’s also important to think about the potential reasons for that failure to pay. A few examples include:

  • The customer thought the bill would be lower, and they weren’t ready to pay the amount you actually noted in the invoice.
  • The customer thought they were going to get the bill weeks or months from now, and it showed up before they were ready.
  • They meant to pay, but they simply forgot.
  • They actually thought that they did pay, but it didn’t go through, they have inaccurate records, they paid someone else or there was some other complication.
  • You sent them an invoice and they promptly lost it; it also could have gotten lost in the mail before they saw it.
  • They’re planning to dispute the payment. Maybe they claim they’re not happy with the quality of the work or they think that you’re overcharging them.
  • They never planned to pay, and they’re hoping it slips through the cracks.
  • They wanted to pay but do not have the money on hand to do so.

These are just a few of the reasons that businesses run into debt issues. Be sure you know how to collect and all of the legal options at your disposal.