Top Tips for Professionals For Collecting Unpaid Fees

 Posted on January 28, 2025 in Debt Collection

Businesses depend on their clients paying for goods and services in a timely fashion. Yet sometimes clients do not pay businesses for goods and services provided. Professionals such as engineers, consultants, lawyers, and accountants face the same issues. However, professionals face unique challenges when collecting unpaid fees. Much of a professional’s business depends on building and maintaining relationships and a solid reputation.

Additionally, there may be ethical considerations governing how a professional may collect fees. Therefore, professionals often have to tread carefully when collecting unpaid client fees. An experienced Cook County, IL debt collection attorney can advise professionals on the best practices for collecting unpaid fees.

Be Selective

It can be difficult to be selective about taking on clients when starting a new professional services business, yet one way to avoid billing issues is to take on clients who have the means to pay for the services.

Consult Your Fee Agreement

A good defense is a strong offense, as they say. This is very accurate when it comes to billing practices. Ensure that you start off any relationship with a client by putting in place a fee agreement that lays out any billing details and sets a clear policy on unpaid bills.

Charge a Retainer

Some professionals will charge a retainer before beginning to offer services. By receiving upfront funds that can be used for payment of legal bills before beginning any work, professionals can ensure that they are paid without putting themselves in the awkward position of having to collect fees.

Bill Regularly, On a Regular Schedule

Bill clients regularly and on a predictable schedule, even if it means providing an invoice when nothing is owed in a given month. This provides stability and sets expectations for clients about when they will get billed, and when that bill is due.

Communicate, and Put Everything in Writing

If a client is late on a payment, it is important to communicate. By speaking with a client, it may be possible to negotiate a payment plan that avoids disputes and reputational damage and preserves the relationship as well as potential referrals. Regardless, memorialize all communication in writing. Ideally, collection letters should reference language used in the fee agreement.

Send a Formal Demand Letter 

If the client is unresponsive to internal collection letters, it may be time to enlist the assistance of a law firm that works on collecting debts for professionals. They can send the client a demand letter and advise you about further action.

Contact a Cook County, IL Debt Collection Attorney

When clients do not pay for services, professional businesses suffer. If you are a professional seeking help collecting unpaid fees, the experienced Chicago, IL debt collection attorneys at Teller, Levit & Silvertrust, P.C. are here to assist you. Contact the law firm by calling 312-922-3030 for a consultation today.