There’s nothing worse for a company than a deadbeat client trying to get out of paying the bill. Sadly, Tampa roofing companies have to deal with deadbeat clients too. The 4.9% annual growth rate per year means contractors are dealing with more bad debt cases than ever before.
You don’t always need to write the amount off as bad debt at the end of the year. There are options for residential roofing contractors who don’t get paid for a project well done.
Assuming you had a contract and took preventative steps to stop non-paying clients, here are some of the things you do.
Is it Worth Chasing the Debt?
You may want to chase down a client on principle, but from a business standpoint, you need to determine whether it’s worth it, to begin with.
There’s little point in dragging a non-paying client to court over a small $200 job. It would cost you more than the bill is actually worth.
So weigh up whether it’s worth it.
Send a Follow-Up
Just because someone didn’t make the date doesn’t necessarily mean they’ve intentionally ignored you. Sometimes things get misplaced.
Send a follow-up email or try to call them. Be friendly but firm. Only when they’ve ignored multiple requests should you escalate matters.
Residential roofing contractors shouldn’t try to crack a walnut with a sledgehammer unless it’s necessary. You don’t want to unnecessarily upset one of your clients.
What Can Your Lawyer Do?
Unless a deadbeat client is determined to avoid paying, a simple communication from an official lawyer will convince them to pay.
Letters from lawyers are scary and ordinary people don’t understand the process, so many will simply stump up and pay.
Ask other Tampa roofing companies if they know a reputable lawyer who specializes in cases of nonpayment for contractors. You might find a lot of roofers in Tampa use the same company.
Even if such communication doesn’t yield the desired results, a legal professional can counsel you on what your next move should be.
Hire a Collection Agency
You don’t necessarily have to go to court before trying to collect your debt. Hire a lawyer who can help you enlist the help of a collection agency to help you recover the debt.
No matter how angry you are, you still need to make sure you comply with the Fair Debt Collection Practices Act. This act dictates how you can go about collecting your debt while staying within the bounds of the law.
Collection agencies aren’t necessarily designed to harass deadbeats. Many of them try to collect in a way that maintains the business relationship should you want to continue it.
Last Word – Take Preventative Steps
Residential roofing contractors can take steps to avoid bad debt in the first place. Before any job, make sure you have a contract.
As tempting as it might be to take cash, this leaves you open to deadbeat clients. It could also threaten the existence of your business.
Check the credit of your clients and have a clear contract before proceeding.
Are you currently dealing with deadbeat customers?