Ask HN: What to do if client ghosts and won't pay?

This is probably the simplest approach. Of course it would be considered fiscally high risk to let any client rack up more than GBP$10k in outstanding payments.

Random advice from the internet:

The most useful thing you can do is a "mission debrief".

+ Identify what were the warning signs of non-payment. Sometimes they will be there from the start and the client never intended to pay. In longer relationships, non-payment is part of changing behaviors and often due to other financial stresses (this is how it tends to play out in economic downturns).

+ Identify the reasons you accepted this particular job/client. It is one thing if this job/client looked like other previous jobs/clients. It is another if the job/client was accepted due to ambition (expanding internationally) or desperation (just need the work) or greed (terms more lucrative than normal).

+ Identify why the client chose you. Maybe you have a rare special expertise (though by definition, this is rarely applicable). But if your services are somewhat fungible (much more common), it is worth examining why you and not another similar service...or to put it another way, a web developer might think about "what happened to this potential client's last developer?" Was the lead outbound or inbound? Was it a warm introduction or a cold call?

In the end, the best likely outcome is a better intuition about potential clients and which one's should be avoided and a greater willingness to stop work quickly over payment and eventually a better process for assessing the financial wherewithal of people and their projects. It is unlikely you will be paid.

For what it is worth, contracts/terms are somewhat useful for defining project scope and describing the processes of work delivery and payment. Unless you are big enough to have attorneys on retainer, they are pretty useless as something to point at when things go off a reasonably happy path. Client and project selection are much more valuable.

Good luck.

Who would you sell the debt to?

I had a client ghost on me in this way. My contact at the company left and I had an outstanding invoice for four figures.

I sent them the late invoice every two weeks for four or five months (while I went on with other work). I always was courteous and asked if hey had any questions or concerns about the invoice. I also reminded them it was past due.

I did send them a Christmas gift (box of chocolates) and I think that is what finally pushed them over the edge.

They paid me.

It was a hassle and I wish I'd gotten a deposit upfront.

I believe the term is "factoring". There are collection and similar companies that will buy your collectibles. In my experience, they will not buy a single collectible. Instead, you enter into a contract to sell your on-going collectibles. One company that I researched wanted 100% of my collectibles or none at all. It is a good arrangement to help with cash-flow, but in my experience the terms and conditions are such that you will probably need to increase your rates by at least 30% to maintain your present revenue levels.