Practice Management

Non paying clients

Clients who don't pay their bills can cause cash flow problems for firms. The reasons for non payment are numerous. In this article the writer focuses on two that touch on the psychology of the client. They are:

  • The client's sense of physical gratification, and
  • Aligning with the client's expectations
In the first the fact that lawyers sell time, skill and knowledge means that clients never have a physical article to enjoy and therefore could be loath to pay. A way around this is to arrange for a realistic deposit, which is topped up as the client's case progresses. In the second instance the importance of agreeing to what level of service will be supplied and at what price at the start of a matter should remove any confusion and satisfy the client's expectations.

Finally he notes that lawyers should have credit agreements in writing because without them the client is not automatically entitled to interest on overdue accounts and is not covered for attorney-and-client fees (to mention but a few aspects).

De Rebus website

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