Getting your final payment

You’ve got a down payment; most of the materials are paid for. The job is done, you’ve cleaned up and went home. Your customer thanks you and says the check is in the mail for the final amount owed. Problem is, the Christmas cards are filling your mailbox, with no sign of that autumn deck job you did…. Is this happening to you? Being stiffed on a final payment is not unheard of, and there are ways to help prevent that:

Asking for the Close- Rather than just tidy up and leave a job site and expect your final payment in the mail sometime soon, make a big deal out of the last payment. Call your customer to make an appointment to collect the final payment, and ask what else you should bring along. Let them know you have some paperwork for them to fill out as well. This puts them on the spots, and also makes it appear to be an important last step. It also shows that you have walked them through every step of the process. Here, you can have them fill out an evaluation form, as well as let them know about any warranty you may offer, to make them feel confident about the professional way things are left.

Deposit- If you have been having problems collecting your final payment, you could start asking for a deposit up front. Not a down payment, but a security deposit. A common way to do this is take 15-20% of the estimated cost, and require that as your deposit amount. This way, the customer will then have a smaller final payment, as the deposit can be used toward that.

Credit- sometimes giving a customer credit for something, even for something made up, will look like a compromise. It will appear as if you are helping the client look out for their money, and shows that you are asking for money while also helping the bill appear lower. This can be done by making up for something you estimated for more than actual cost, such as
giving someone a $100 credit for materials.

Choose Your Clients Wisely- a way to avoid all of these collection issues is to avoid any clients that you may suspect will be a financial problem. If you are working with someone whose poor payment habits are found after the fact, then perhaps you can set up a time to meet to discuss payment terms and make sure the customer is aware of the terms. The key is to make sure this is understood from the get-go.

Using the tips outlined above, your final payments should be collected more smooth- if not in advance!