How Can I Collect Overdue Payments Without Annoying My Clients? Advice Needed!

Hi, I am from Ahmedabad and started my recruitment consultancy business from home while handling two kids. I have had no help from the in-laws' side. Nevertheless, I am determined to grow this business to its fullest potential. I have acquired clients, and there have been closures; however, they are supposed to pay within 30 days as per our agreement, but they haven't paid for the last 1.5 months. I have reached out to them via email and phone calls multiple times, but I am concerned that my persistence may come across as irritating to them. I seek advice on how to collect my payments. I have also sent them our legal terms and conditions via email.

Please advise on the best approach to retrieve the outstanding payments.

Dear Tappi, I really do understand the situation, and I genuinely feel sorry. Working as a freelancer is always risky. When it comes to payment, there is nothing you can do to prompt an immediate response. This will be a time-consuming issue that may affect your working nature.

As a freelancer, you will always have many offers knocking on your door. It is crucial to be very careful in choosing them, and please ensure that you work with a payment guarantee. Try to discuss this with your employer right from the beginning and make sure they accept an escrow service or advance payment.

I truly appreciate your hard work and determination. I see that you have successfully completed your work. Despite this negative experience, please use it as a learning opportunity for the future. Consider this working experience as an achievement in your portfolio and explore new ventures.

Now that you have gained experience, establish clear working rules and payment terms like escrow security and a 50% advance payment. Work only with clients who agree to your terms. There are plenty of employers out there searching for the right worker. Build strong client relationships and aim to receive referrals.

Revise your business plan and consider targeting Human Resource companies overseas.

Please do not give up, and I extend my best wishes for your successful future!

Thanks

I am planning to start the same business from home. I have some resumes too but cannot understand how to get clients for them. Kindly help. Urgent help needed.

Better go and meet them to get to know the ACTUAL issue that's holding up the payment. It COULD be a genuine delay from their end OR it COULD also be an attempt to skip your payment... you wouldn't know unless you read their body language, which can happen only in a face-to-face meeting.

And as James Win mentioned, LEARN to say NO too. It's always better to do some due diligence from your end before you sign up any client. You will save yourself a lot of trouble.

I had a company in Bangalore approach us but wanted to pay after 3 months [even with a Replacement Clause of 3 months]... though the skill sets and numbers were very comfortable for us... we just said NO [even though we know many agencies are okay with such terms].

Also, please note that what's written in the agreement need not mean that the clauses will be adhered to the dot. 1.5 months against 1 month isn't very high in the current market scenario.

However, advance payments won't work in the recruitment sector... there are many agencies to choose from.

Getting associated with a larger recruitment company that's stable and established is one way to handle/preempt such situations... but here again, you can't generalize every private limited company as a tome of fairness and promptness. You need to use your judgment well before deciding.

All the best.

Regards,
TS

I really appreciate your post. You are very right that self-judgment and analyzing the deal are very important before signups. However, I do differ with advance payment in the recruitment sector. I myself have worked with a UAE-based Human Resource sector with advance payment security. It is always about your terms and conditions that you initiate before the work. I also accept that not everyone, or most, do not prefer advance payment, but there are always possibilities to reach the destination when you have fixed terms. As you said, just say NO to the people who do not match with your work terms and start working hard to reach the safest point.

Thanks,
James

Challenges with Payment Models in India

The UAE model doesn't really work in India for the simple reason that when companies find many agencies are okay with 100% payment after the candidate joins, why would anyone sign up for advance payment deals—unless, of course, there's a solid USP.

The incident I mentioned about the Bangalore company also points to something of a core human psychology of the company... the replacement clause is for 3 months, and the payment is also after 3 months. In a nutshell, the company is saying: "You trust us, but we don't trust you." Whether this behavioral pattern of the company is a standard operating procedure for them or just plain unintended, the message being conveyed is the same unless they make an effort to clarify without being asked.

Regards,
TS

Dear TS,

Very well. I am not into the Indian market. It is really shocking that the "Replacement Clause is for 3 months & the Payment is also after 3 months". This offer is really bad. If companies accept such offers, how will they survive if they are left unpaid?

Well, one should be very careful when choosing work!

Regards,
James