Soft touch with money

BillyBoy13

I run my own company and one of my biggest issues is taking money of people when they kick up.

Now I know some people are just going to say its an assertive/confidence issue which it absolutely is not.

When I know someone has money I'd chase them through hell and high water.

But when a customer starts pulling the old, "Im broke, and the kids haven't had a proper meal in days and I'll have to pay you with my mortgage payment money" I usually end up feeling like crap and then end up writing it off. And then if I do take the payment I feel guilty for weeks after.

And then later on its a real kick when you find out the reason he's broke in the first place is because he bought himself a new German car or got an extension on the house etc..

I'm putting this here because it is a personal issue for me. If I could just learn to block out my conscience I'd be onto a winner.

Flippyfloppy

Anger is your friend. Don't give anyone who got themselves in debt with you the benefit of doubt. They aren't thinking about your bills when they refuse payment, come up with a sob story are they?

As for kids meals , report them to social services if they're openly admitting to neglecting the children's health.

Tokyo

BillyBoy13 wrote: »

I run my own company and one of my biggest issues is taking money of people when they kick up.

Now I know some people are just going to say its an assertive/confidence issue which it absolutely is not.

When I know someone has money I'd chase them through hell and high water.

But when a customer starts pulling the old, "Im broke, and the kids haven't had a proper meal in days and I'll have to pay you with my mortgage payment money" I usually end up feeling like crap and then end up writing it off. And then if I do take the payment I feel guilty for weeks after.

And then later on its a real kick when you find out the reason he's broke in the first place is because he bought himself a new German car or got an extension on the house etc..

I'm putting this here because it is a personal issue for me. If I could just learn to block out my conscience I'd be onto a winner.

It's nothing to do with conscience really - it has to do with separating your business life and your personal life.

The simple fact is, you provide a service, and people can choose whether or not to avail of that service. If they're worried about their mortgage payment money, or saying that their kids won't be eating for days, then perhaps they shouldn't be availing of your business until they are a bit better off financially.

One thing I've learned in life is that you'd be surprised how easy it is to get a reputation as being a bit of a soft touch, and how quickly that word can spread. And as you're finding out when you see customers driving round in a new car, some people will push their luck and then some, if they think that they can get away with it.

I appreciate that you are being made to feel guilty, but if you can't deal with taking in monies owed to your business, then maybe you should delegate that job to somebody that can. And worst case scenario, there are other options available rather than just writing off customers debts - you can defer payment for a couple of weeks, or establish a weekly payment plan over six months for example. And ask yourself this, if your mortgage payment was due in the morning, or your kids were going hungry, would the same people be queuing up outside your door to help you out??

AnonMouse

Would it be possible to offer your service without giving people credit? I found the act of chasing people for money, to be one of the only downfalls of being self employed.

As mike_ie correctly said, people have the choice of indulging in your service or not. if you can't implement a no credit scenario, i'd suggest at least taking a deposit.

December2012

You put your bills first.

You are more important to you then these freeloaders - they are not clients or customers. That's a term reserved for people who pay.

Cut off service to those in arrears. Come to a suspension with those who are paying arrears.

And do not give credit.

meeeeh

Op,

Will the same people go to tesco and ask if they can take the foor for kuds for free? Do not write off debts, take instalments or make some other arrangements. Also maybe a credit card facilities would be useful if you don't have them already.

professore

I am completely ruthless when it comes to getting paid for my work. I wouldn't do it to other people, if I can't afford a product or service then I don't order it in the first place. If their kids are starving that's their problem. My kids aren't going to starve because of them! If their business is that bad, then they should declare bankruptcy. To be blunt you are an idiot to fall for these stories.

I would allow some flexibility with payment, especially for good customers, as cashflow can be tight in any business.

ivytwine

There was a man in my town who had to be taken away from making decisions within his business (years ago) because he was terribly decent and kind and it became known around the place that he would write off debts if he thought kids were sick etc. But of course for every genuine person there were five chancers.

Unfortunately you DO need to be ruthless when it comes to money. What about you? Your family? Your household? You do the work, you need to get paid for it.

Maybe it's the fact that where I work you get chancers all the time, but tbh when I hear "Oh that's my kids' money" I genuinely think "You are a terrible parent".

I know this sounds harsh and nobody is saying you need to become Ebenzer Scrooge, but you need to become a bit cannier I think. If you have doubts, then don't give in.

And guilt trip them yourself. "Oh things are tight..." "Yeah, same here, that's why I need you to pay me!"