Originally Posted by utzjohn
Ive encountered this situation in a previous business that I owned and in my mind there are three options - some of which will likely damage the relationship beyond repair (but that might get you some of your money back).
1. Ask them to pay by credit card or come up with an installment plan
2. Small Claims Court - especially if you have a contract
3. A Factor - You can try and sell the debt to someone else for less than its worth
My advice - in the future always have a contract, collect a portion up front and offer to take payment via credit card.
This is the best response so far. An ounce of prevention is worth a pound of cure. And by that I mean, "Get it in writing!" (i.e. CONTRACT)
Have a contract complete with a bulleted statement of work, a list of deliverables, and what is required to consider that deliverable DONE. Price each delivable separately in the contract so that if they say you didn't perform one of the tasks, it's clear what they still owe you for the others.