Payment Uncertainties

This is how I deal with it for my clients

Akhil Mishra
May 08, 2024

Legal enforcement definitely is a tiring process.

That's why risk-mitigating steps should be taken to avoid going in that direction.

But, when the project amount is high.

And you can afford to invest time and money in litigation.

Or resolving through other means, then it is worthwhile to explore that option.

But again, your groundwork should be solid.

You must have a valid cause of action.

And you should be in the right within the framework of the signed contract.

Now for that, you need to focus on two things:

If it has happened to you once, then it will happen to you again.

No matter how small that chance is, the fact is it still exists.

So always foresee the eventuality of things going wrong in the project.

And plan for it in advance.

The way I like to do it is through Milestone Payments.

Milestones keep the project timeline and your payment schedule certain.

You get the cash flow, which you need, at least in longer projects.

And your risk is mitigated - as only part payment will be disputed.

Another thing I like to do is add deterrent clauses in the contract itself.

For e.g., you can add a late payment fee.

And also the right to suspend the services and terminate the contract.

But this typically depends on the jurisdiction, so make sure you have a lawyer checking that for you.

You don't want to add a clause that's completely unenforceable.

Now if you are in the right as the vendor.

And the customer still disputes the payment.

Or just ghost you mid-way, then enforcement is the only way.

Once you do that, you can at least be in a better and safer place.

Now if you need my help to take care of those two things for you, pick a slot here:

Talk to you soon.

-- Akhil Mishra

or to participate.