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No matter how carefully you word the contract, no matter how carefully you discuss your rates with your clients, eventually you will get a client who either refuses to pay you for the work you've done or keeps putting it off. What are you going to do?
The first thing to do is refer back to the contract. This is what will give you the legal backing for demanding your pay. Late payments are one of those things that should be protected by your contract! Make sure your contract says that until you are paid they do not own the work you perform.
Your first request for a late payment should be phrased politely. There's no need to be rude at this point. A simple way to enquire is to contact them and thank them for the work, then ask when the payment was mailed. It is not impossible that their payment has been delayed in the mail through no fault of their own, so you want to find out when it was sent. If they haven't sent it yet, remind them that it is overdue and ask how soon you can expect it.
Keep notes on the client's answer so that you can refer back to it as needed. If you have to continue asking for the payment you want to be able to say what promises were made and broken.
If the work was done for a business with an Accounts Payable department rather than for an individual or very small business, you may need to find out who you should speak to about your payment. It may very well not be the person you worked with on the project.
Ask if there is something in the way of your getting paid if this first request doesn't result in a check appearing in the mail within a reasonable time. Maybe someone hasn't signed off on the project. You need to know what's holding things back before you get angry, no matter how much you need the money,
As the payment becomes a month or more late, it may be time to get a little firmer with your client. It's probably time to bring up the phrase "collection agency". Keep it light on the first mention, especially if you want to keep the client for potential future projects.
When it appears that the client has no intention of paying you, it's time for the collection letter. You can find some free samples at http://www.toolkit.cch.com/tools/letter_m.asp that should help you get started on that process. You could also try hiring a collection agency or report them to the BBB. You may or may not get results from any of these, but reporting to the BBB has the advantage of being a public place where others can see that this person has caused problems.
Even after a collection letter is sent, the time may come that you have to take the client to court. This is where all the time you spent documenting what you did to try to collect your pay might pay off. It's also why you should never work without a contract. However, even getting a judgement against them is no guarantee that they'll pay the judgement.
Completely nonpaying clients are rare if you are careful about choosing your clients and have a well written contract. Most times freelancers do get paid within a reasonable time period. However, it very much pays to know what to do for those who are slow to pay or refuse.