No one gets into business dreaming about chasing payments or arguing over leases. But ask any business owner—they’ll admit these issues come up more often than they’d like.
Here’s the thing: the difference between businesses that sail smoothly and those that constantly stress comes down to one thing—having a plan. So let’s get practical about what to do if someone owes you money or you’ve hit a snag in your lease.
1. Make Sure You Know Exactly Who You’re Dealing With
Yeah, this sounds obvious. But trust me, many businesses skip it and regret it later.
Before you do anything—sign a lease, issue an invoice, whatever—double-check your client or tenant details. Are they an individual? A company? A partnership?
If they’re a company, always get their registered business name and an actual street address. PO boxes are great for letters, not for serving legal notices if things go south.
If it’s a smaller business, consider asking directors or owners for a personal guarantee. That gives you something solid to chase if the company vanishes or runs out of cash.
2. Get Your Contracts Clear and Specific (No Handshakes, Please)
When you’re excited about a new client or a promising tenant, the paperwork bit can seem boring. But honestly, this part matters the most when problems arise.
Make sure your contracts spell out:
- Exactly when payments are due
- What happens if they’re late (late fees, anyone?)
- Who’s responsible for maintenance and repairs in lease agreements
- What happens if someone wants out early or doesn’t stick to the terms
If your contracts are flimsy or vague, get some quick advice from someone who knows their stuff in commercial and business law.
3. Jump On Late Payments Straight Away
Waiting never helps. Not once has ignoring an unpaid invoice made it go away (sadly). If the due date passes and silence follows, send a polite but firm reminder ASAP.
If that doesn’t work, try:
- Sending a formal statement listing exactly what’s due.
- Making a friendly follow-up call—people often pay faster when they have to chat about it.
Basically, don’t sit on your hands. The longer you wait, the less chance you’ll see that money.
4. Incentives (or Consequences) Actually Work
Money talks, right? So why not use it to your advantage?
Offer a little discount if invoices are paid early—it really motivates clients to get you sorted first.
On the flipside, late payment fees can also be pretty persuasive. Clearly stating these in your contract is key, though—no surprise penalties or you’ll risk damaging client relationships.
5. Call in the Pros (Debt Collectors Aren’t Always Scary)
People get awkward about debt collection, but the truth is, good agencies do this professionally, calmly, and usually without damaging your client relationships. They’re worth considering if invoices stay unpaid for too long.
Invoice financing is another nifty trick. Instead of waiting around, a finance provider gives you immediate cash for unpaid invoices, keeping your business rolling.
And if you’re stuck in something deeper or more complicated, seriously consider getting advice on commercial litigation. These folks know how to navigate these waters way better than most.
6. Lease Issues—Keep Calm and Communicate First
Leases can be tricky beasts. Maybe the tenant hasn’t paid rent, or maybe repairs aren’t being handled properly. Whatever the issue, keep things calm initially:
- Have an honest, straightforward conversation (face-to-face or phone is best, emails can escalate fast).
- Clearly outline what the problem is, what needs fixing, and by when.
- If talking doesn’t get you anywhere, a written notice can be a powerful next step.
If communication stalls completely, mediation is your friend—it’s cheaper, quicker, and less confrontational than a courtroom battle. For more complicated property stuff, getting quick advice from someone familiar with conveyancing and lease issues saves headaches.
7. If It Comes to Court, Know Your Options
Sometimes things just won’t resolve nicely. If you’ve tried everything and the issue persists, legal action might be necessary.
You’d start by filing a claim and getting a court judgment confirming exactly what’s owed. But even a court judgment isn’t a magic bullet—you’re still going to need to know how to enforce a court judgment debt in Victoria.
Wrapping Up (Without the Legalese)
Unpaid invoices and lease issues aren’t fun, but they’re totally manageable if you’re clear, quick, and prepared.
If you’re dealing with these kinds of headaches right now, reach out and chat to the friendly team at Mohan Yildiz & Associates. Seriously—we help businesses solve these things daily, minus the drama.
