A community of 30,000 US Transcriptionist serving Medical Transcription Industry

Haven't been paid by client since Aug --WWYD? - Broke and Burned Out

Posted: Sep 30, 2011

I'm an IC but I don't work for any company, I have my own clients. One of my clients hasn't paid me since August, claiming a cash flow problem and they stated they "want to pay me asap". Well here I sit, tons of work to be transcribed from them but NO motivation because I'm behind on MY bills (IRS, etc) due to them not paying me.

My husband says wait until the 15th of October when they for sure will have my September's work bill and then tell them pay or I quit and will see them in court.

I have 2 other clients who are wonderful ... no hassles, no constant telephone calls, etc and they pay within days of receiving their invoice. This client, on the other hand, is a huge pain in the a$$ BUT I don't make enough from the other 2 clients to be able to live off otherwise I'd quit the PITA client in a heartbeat.

Reasonable advice anyone? Thanks in advance!

WWID - hmmm

[ In Reply To ..]
I would do work for them today and bill them through the end of September. On the bill, I would make a statement that says something like "transcription serivces suspended until full payment is received."

Then I'd take a break, breathe deep, enjoy a few offs days, then start soliciting other clients while I waited to see how the slow pay client handles their situation. If they pay, I'd pick up where I left off, only I'd start billing weekly instead of monthly with a late feel clearly explained (and included pre-emptively) on the bill.

best of luck to you.

Excellent advice, exactly what I do in this case. - IC

[ In Reply To ..]
I also have had clients over the years like this and most will come around if you stop sending the finished work until paid, but you need to have this scenerio in the contract, as well as a late fee clause. Unfortunately, the only recourse for ICs if not paid is small claims court, and good luck with that. I am still owed a lot of $$ from 5 or 6 years back because that person skipped town and it would cost me more than I am owed to track them down to file a claim.

WWID - MollyMT

[ In Reply To ..]
What are the terms of your contract with them? What does it say about late fees, how soon you are to be paid, how often they are to be billed?

Many companies pay their bills on a 30/60 day cycle but it sounds like that's not been their past method.

I'd finish work for today. Make up September's bill, add on what they owe you for August plus a 10% late fee and the blurb that they have a past due balance and payment on that balance is due immediately.

I then would not transcribe anymore work for them until August was received. No point in building up a balance you may never see. It'll mean you have to work yourself to death once they pay (or you may want to transcribe the work but not give it to them to avoid that).

I wouldn't go straight for threatening court yet, it's only been 30 days.

Invoice weekly and switch to credit card pmt for them. That - me

[ In Reply To ..]
30-60 days is for the birds. I am a single mom and I make it known up front that I can't afford to wait. Only one client pays by check and they pay within 10 days. Everyone else pays in a couple of days. I've learned after so many years to not be shy about asking for payment. Good Luck!

WWYD - Old Pro

[ In Reply To ..]
First of all, I would most certainly not be still working for them in October if they had not paid me since August. I would then tell them that while I sympathize with their cashflow problems, those problems have nothing to do with me. I would then cease any and all work for them until their account was brought current and I had a written memorandum of understanding listing the dates on which I would be paid. I would then have them served with a notice by the Small Claims Court if they did not bring the account current in 10 days. Tell them also that you will file a complaint with the BBB and with the Department of Business Registration for your state. That ought to get them off the dime. Don't transcribe one more word for them until the account is current and you have some definite WRITTEN agreements in place. (I surely hope you are not working without a written contract.) Good luck.

haven't been paid - Farm Lady

[ In Reply To ..]
I have a private client who has consistently been late also. I wait 10 days, then re-bill. After another week goes by (which has happened) I then send a note to tell them that unless I am paid in full within 3 working days I won't be able to take any more of their work until they catch up. Which they always do, promptly! I would not threaten to quit, but I would stop taking new work until they've paid the past due amount.

Update - Broke and Burned Out

[ In Reply To ..]
Thanks for all your help/advice! I've been paid for August, check is supposedly in the mail for September and I'm keeping a tight rein on them from now on. I appreciate all of you! Thanks!!

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