what to do with clients who don't pay?

[IanF]

This matter is below R7000-00. It will cost you for the delivery of a Final Demand and a Summonds, and a hour in court. You don't need legal council.

Shaun
Tell us more I also have some debts below R7k that if collected would make a good bonus.

[BBBEE_CompSpec]

I need to see two CCMA clients on Monday, then pop into Total in Rosebank. I was planning to come and see you about those folders you are advertising on your web site. I will show you how then. That advice won't cost you a cent.

[IanF]

Shaun
Sounds good

[SilverNodashi]

Does anyone know of a reputable debt collector in the JHB area that I could make use of?

[desA]

I recently did some work for a client who only paid half of the original agreed upon amount for the work done.

Now I can't get the money (R3000) out of him, he doesn't answer my calls or emails, or return voice mails / messages left at receptionist.

So, what do I do to get the money? I'm thinking I should just blacklist him - I'm tired of people who think they can walk all over me. BUT, what's the correct ways in doing this, if this is the only way I can (possibly?) get the money from the client?

Or, what other steps can I take?

A few thoughts:
1. South Africans have an international reputation as clients who do not pay their bills.
2. They often abuse the legal system as cost of recovery often makes it a waste of time.
3. In some countries you can lodge an unpaid claim against the business in question & ask for it to be declared insolvent. (This often gets a sharp response).
4. Adjust your payment structures -
For software projects: 50% upfront / 50% before final release
5. Always use the client's money for material projects, not your own.

I suffered, in my earlier years in business in SA, with people who did not pay their bills. This was one of my original reasons for moving into the wider world.

Contrast this with Nordic countries who are prompt payers & will hound you for your invoice so that they can pay on time. They have a legal framework in Sweden, for instance, which can attach a debtor's assets, sell them & force payment, of unpaid bills. It would be nice if SA could do something similar.

[Marq]

South Africans have an international reputation as clients who do not pay their bills.

Thats an interesting statement - I was under the impression it was the opposite. Where does this come from?

[Marq]

Or, what other steps can I take?

• Keep on sending statement and invoice - dont allow them to think you are giving up.
• Create a website (you are in that game) - give them an advert for free and state that they have not paid you for your work done.
• Show them advert - send emails with what looks like hundreds of recipients.
• Design letterhead that says collector of debts - send letter registered post demanding result.
• Find hobo in park....make sure he really stinks. For R100 bucks he can deliver same letter - must make sure he sits in reception until the owner had letter in his hand. Hobo must then wait for response letter or payment. Try and get him to stay their the whole day. Monday is normally a good day for this one.
• Find electrical box outside building - open up - flip switch on and off a few times and then leave in off position. Do the same for water supply.
• Phone their sales department and organise for them to come and give you huge quote - tell them you need to see the head honcho with the team thats coming. Meet in Hotel reception area - Deliver letter of demand when head honcho arrives and give him the gears in front of staff. Tell him this is only the first of many such reunions if they do not pay up.
• Stand outside their building with a sign that says bad payers be careful - toy-toy a bit - its all the rage.
• Send emails to their clients - asking them if they are having any problems like you are?

[SilverNodashi]

Thats an interesting statement - I was under the impression it was the opposite. Where does this come from?

I can vouch for this. Our South African based clients simply don't pay. Then they threaten us with law suits when we suspend their services - regardless of the fact that it's in our TOS which they agreed on.

On the other hand, our USA & UK based clients pay without a wink. And the price of the product doesn't make a difference either, I get the same behaviour from "cheap clients" & "expensive clients" One would expect that clients who generally pay much less (sometimes as low as R15pm) have the money, and those paying a few thousand rand doesn't. Still, even those with a R15pm bill pays as bad.

• Keep on sending statement and invoice - dont allow them to think you are giving up.
• Create a website (you are in that game) - give them an advert for free and state that they have not paid you for your work done.
• Show them advert - send emails with what looks like hundreds of recipients.
• Design letterhead that says collector of debts - send letter registered post demanding result.
• Find hobo in park....make sure he really stinks. For R100 bucks he can deliver same letter - must make sure he sits in reception until the owner had letter in his hand. Hobo must then wait for response letter or payment. Try and get him to stay their the whole day. Monday is normally a good day for this one.
• Find electrical box outside building - open up - flip switch on and off a few times and then leave in off position. Do the same for water supply.
• Phone their sales department and organise for them to come and give you huge quote - tell them you need to see the head honcho with the team thats coming. Meet in Hotel reception area - Deliver letter of demand when head honcho arrives and give him the gears in front of staff. Tell him this is only the first of many such reunions if they do not pay up.
• Stand outside their building with a sign that says bad payers be careful - toy-toy a bit - its all the rage.
• Send emails to their clients - asking them if they are having any problems like you are?

shees, I don't really want to stoop down to their level.

[desA]

Thats an interesting statement - I was under the impression it was the opposite. Where does this come from?

This is well understood, for instance, in London, UK. There are regular references to the South Africans' unwillingness to settle debts.

There are various other comments that will come across on the internet from Germany, Australia regarding South Africans living in their midst. They do not pay their bills.

I'm not sure where you came by the impression that South Africans are good payers. This was never my experience in SA, where the concepts apply:
1. 'roll as long as you can - 90 days, or more';
2. 'pay only under threat of hand-over';
3. 'simply don't pay - take me to court'.

Unless SA has changed drastically in the past number of years, they can be considered, from my own personal experiences, to be of the worst payers in the world.

[desA]

I can vouch for this. Our South African based clients simply don't pay. Then they threaten us with law suits when we suspend their services - regardless of the fact that it's in our TOS which they agreed on.

On the other hand, our USA & UK based clients pay without a wink. And the price of the product doesn't make a difference either, I get the same behaviour from "cheap clients" & "expensive clients" One would expect that clients who generally pay much less (sometimes as low as R15pm) have the money, and those paying a few thousand rand doesn't. Still, even those with a R15pm bill pays as bad.

This is exactly what I was referring to.

shees, I don't really want to stoop down to their level.

The amount of time, effort & illegality required, would bankrupt a creditor. The South Africans generally know this, & play hardball. This is endemic in many peoople's thinking.