How To Collect Money From Clients Who Won't Pay

For every tradesman, there comes the dreaded and inconvenient time of late payments from clients. With a constant flow of jobs and projects as an electrician, chasing payments is a drain, not only on your team and efforts but your resources, too. That being said, with the right processes in place, you can ensure your payment dates are met without the hassle and stress. Nobody wants to be reminding customers that invoices are in their inboxes or late payment fees may occur, so let's take a look at how you can effectively collect money from your clients in the future. 

Invoicing Processes

Firstly, the invoices sent out to your clients by your staff should be clear, concise, and correct. Each invoice should include the essential details of the job, including the service, timings, materials, due dates, payment terms, and more. Without producing detailed yet understandable invoices, your clients may look to dispute them or contact you to ask questions before sending the payment.

Alongside processing invoices with a detailed account of the job, costs, and materials, this paperwork should be produced and distributed in a timely manner. Waiting for weeks after completing the job to create and send your invoices will only prevent your clients from paying promptly. It's also beneficial to send your requests for payment while the excellent services you provided are fresh in your clients mind.

If you have payment terms such as Net 30 or Due Upon Receipt within your contracts with clients, you may wish to encourage timely payments with late fees and penalties.


Personal and friendly communication has always been the best way to approach communicating about payments with clients, especially those less eager to pay on time. Occasionally, some clients may just forget the date of their due payments or lose paper invoices. With this in mind, rather than approaching them in a hostile manner, send a simple, friendly reminder. This could be a text, email, or letter. Always consider the 'why' of why the payments may be late and prompt your clients without escalating the situation.

If this generic reminder seems to be ignored or overlooked, you can consider a more personal approach with a phone call. Having a clear understanding of why payment is late through an open and honest discussion allows you to work with your clients to resolve the issue quickly without further disputes.

A great way to ensure your payments are on time in the future is by scheduling regular follow-up emails/texts. Clients could receive these every week, with an increase in urgency used to make sure they're aware they are running out of time to make a payment without the late payment fee. If you happen to have a situation in which a payment hasn't been received, these regular follow-ups provide evidence that you requested the money and reminded your client it was due if evidence becomes necessary.


With the help of job management software offering streamlined payment features, you can generate and send automated invoices with the click of a button. This will include all necessary details with accuracy while eliminating the time required by your electricians to fill out endless paperwork and forms.

You can also send automated invoices and reminders, which can be especially helpful in ensuring payments are received on time. Powered Now allows you to schedule these reminders at specific intervals, be it with a friendly approach or with the urgency of an upcoming late payment fee if the delay continues. Having this option for automation speeds up the invoicing process, giving you and the team more time to focus on preparing for upcoming jobs and getting current jobs completed. Additionally, Powered Now provides an all-in-one platform with an easy payment process between you and your clients.


For some, the work required is essential, no matter whether it's affordable or not. In today's cost of living crisis, electricians are encouraged to offer clients payment options. Be that 'pay in 3' or financing. This shows your clients you are flexible and understanding with a willingness to work with them to make payment more manageable.

When To Escalate Late Payments

If a client still fails to pay despite your efforts and reminders, you may need to escalate the matter to those with more authority. This may be through a collection agency, taking legal action in court, or placing a lien on the property where you performed work.

As the owner of an electrical company, managing late payments will become a part of the job. With clear and concise communication, an understanding of the current cost of living circumstances, and automated software, you can ensure you set yourself and your clients up for success with timely payments in the future. Don't let unpaid or late payments hinder your business.

Ready to find out how Powered Now can elevate your payment processes? Get in touch.

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