Dear Bob, Two years ago, I struck out on my own as an independent consultant. The first year was not good, but I got through it with some help from friends and family. The second year started out great. I had a nice long-term contract with one client and a couple of small, shorter-term contracts. And then clients stopped paying. I am at a loss. As a sole proprietor accounting on a cash basis, I can't call this Dear Bob,Two years ago, I struck out on my own as an independent consultant. The first year was not good, but I got through it with some help from friends and family. The second year started out great. I had a nice long-term contract with one client and a couple of small, shorter-term contracts. And then clients stopped paying. I am at a loss. As a sole proprietor accounting on a cash basis, I can’t call this bad debt, and yet I seem unable to convince my clients to pay me for work that I have done. I am sure this is not uncommon. What steps would you suggest someone in this situation might take in order to achieve some kind of closure (hopefully involving collection of at least *some* amount) with reticent clients?– My kids need shoes Dear Shoeless …I haven’t had this experience myself, so before I give any advice I need to provide the caveat that I’m giving advice I’ve never had to take. Having said that, here goes:The first question is whether you have a signed contract with each of your clients. If you don’t, it’s time that you did, and you can use that issue as a way to start the conversation about getting paid. “It appears we have a misunderstanding about terms, conditions, and obligations. I’d like to sit down with you to agree to a contract that in my mind matches what we agreed to when we first started doing business.” Have a contract with you as a starting point, review it and agree to modifications or not as you think appropriate, and agree that before either of you can sign the final document it will have to be reviewed by the lawyers. Once you’ve agreed in principle, you’re in a position to say, “We both agree these terms are fair. By these terms, you’re very late in paying me for the work I’ve already performed for you. When can I expect a check?”Before we go on, there’s a point that’s probably obvious, but is important enough that I need to mention it: Document every contact with these clients from this point forward.Start by assuming the problem is an administrative slip. In general, be pleasant to your work contact, reserving most of your escalation for Accounts Payable. With Accounts Payable, reference your invoice number, explain how late the payment is, ask if it’s been processed and when you can expect a check. If the answer is that they’ll have to track it down, ask when you can expect a callback from them, and hold them to the schedule.If Accounts Payable turns into a black hole, escalate to your work contact. Again, assume it’s just an administrative problem: “I don’t know if you’re aware of it, but at this point you’re three months behind in paying my invoices. What do we need to do to get this fixed?”If neither of these strategies pans out, it’s time to start using the “L” word. Start back at Accounts Payable and insist on being connected with the Accounts Payable manager. If the person you’re talking to balks, say, “Look, I’ve been working with you for three months trying to get this paid and nothing has happened. Clearly, you aren’t in a position to get this done and I’m trying to keep the lawyers out of it. So let me talk to your manager. Now. Please.” When you have the Accounts Payable manager on the line, be direct, firm, businesslike, and above all unapologetic. Some people are embarrassed to ask for their payment for some reason. Don’t be – you have nothing to apologize for, they do. “Your company is three months behind paying my invoices. I’ve been trying to work through the appropriate channels, and all I get are promises, which I can’t use to pay bills or buy groceries. I’m trying to avoid turning this over to my lawyers, because once I do it will get expensive for both of us. Now what do we each have to do so this gets taken care of this week?”If the Accounts Payable manager tries to explain that it takes longer than that, make it clear this isn’t acceptable. “I understand it takes longer. It already has taken longer – three months longer. You and I both know that if you want to you can cut a manual check today. I’ll be happy to fax you a copy of my invoice right now, if that will help expedite the process. Just don’t tell me I have to let this go through the process, because that’s how we got into this situation in the first place.”If you do have to do this, call your work contact immediately and say something like this: “I just talked to your Accounts Payable manager. I hope it doesn’t end up causing you any difficulties internally – I might have come across more harshly than I’d intended.” Your goal is to keep that relationship focused on you work product – you don’t want you name associated with headaches among those who decide to keep you engaged there until you decide the relationship is permanently blown. In any event, the next point of escalation is a formal letter (on paper) to Accounts Payable with a copy to your work contact, the gist of which is that this is the last opportunity to resolve the issue amicably. If that doesn’t pry a check loose, it is time to contact a lawyer. If you have to, make sure your lawyer includes his/her fees in the settlement. There’s no reason you should have to pay for this expense.Let your attorney know in advance whether you’re prepared to seek a legal remedy. There are valid reasons to avoid doing this – no matter how justified you are, word does get around, and that can make selling the next engagement more difficult. On the other hand, if there’s enough money involved it might be worth it.A good lawyer, though, can generally get something like this taken care of without it coming to that. This is an ugly situation no matter how it plays out. So stay cool, be persistent, and don’t let ’em off the hook.– Bob ——– Technology Industry