This is a phrase that I repeat over and over again to my clients. It is becoming especially revelant during these recessionary times. There will be more clients slow paying their bills. It is the nature of the economy. Watch out for large corporations doing this especially (because they can) This will put pressure on your cash flow (as receivables go up, cash flow goes down) and your ability to pay your own bills. A customer that does not pay their bills is not a customer, they are a collection problem. I would much rather not do the work than not get paid.
A few tips that can help with collections:
Most people want to pay their bills. Do not be shy by asking to be paid. You did the work, you deserve to be paid. The squeaky wheel does get the grease as they say.
When the bill is sent out, a week later ask if it was received and find out when it is scheduled to be paid. Follow up to ensure it is paid.
Ask for deposits up front if that is possible in your business.
If a client is not paying, do not continue to do work for them. That makes you look silly and it is not the best chance of getting paid.
Do you have other suggestions?
You can also check out an article I which gives more tips.
