Can Your Clients Pay?

 


Visitors: 313

The first time you do business with a client there's always a big element of trust involved. They are trusting that you will deliver on your promises and you are trusting that they will pay you.

Now, trust is nice but knowldege is even nicer. Spend some time to check out your new clients before you extend them credit. Ask questions, solicit supplier references, and do a credit check if necessary.

Not long ago, we had a meeting with a potential client. In the course of our conversation, it became apparent that he had a huge payables problem. It was also apparent that reducing these payables was not a priority for this client. Rather than simply take on the client and join the growing list of payables, we asked for a substantial deposit. When that did not materialize, we chose to return the file instead of taking a chance.

If you have serious doubts about the client's ability to pay, you have several options:

1) Refuse to take them on as a client.
2) Require full payment, in cash, before the work begins.
3) Require a deposit upfront, and continue with milestone payments throughout the project.

If you choose this last option, be sure to monitor the invoices carefully. If the client falls behind, refuse to do more work until the payments are caught up.

By researching your clients ahead of time, paying attention to your intuition, then choosing your payment terms accordingly, you can minimize your bad debts.

To help get your payables and receivables in order or to keep them that way, visit: http://www.theprofitline.com

Fern Gordon is a Partner in The Profit Line Inc, a company that specializes in small business bookkeeping and financial management. For more information, check out http://www.theprofitline.com

(316)

Article Source:


 
Rate this Article: 
 
Functional Advertising - From Clients' Lips To Clients' Ears
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

My Clients Won't Pay Me - What Now?!

by: Marsha Maung (November 21, 2005) 
(Home Based Business)

Translator Job - Finding Clients That Pay

by: Jim Goldman (September 30, 2008) 
(Reference and Education/Languages)

6 Proven Strategies for When Clients Don't Pay

by: Sandra Martini (November 21, 2006) 
(Business)

Does it Pay to Backup Emails from Clients Like Outlook Express?

by: Ted Peterson (October 25, 2005) 
(Computers and Technology/Data Recovery)

Self Promotion for Copywriters - How to Attract Clients Who Will Pay You The ..

by: Clayton G. Makepeace (August 30, 2007) 
(Business/Marketing Direct)

Land High Pay Copywriting Clients by Overcoming Lack of Confidence

by: John Manley (August 31, 2006) 
(Writing and Speaking/Copywriting)

When Clients Don't Pay - Tips For Freelance Writers & Editors

by: Laura J. Thompson (March 27, 2007) 
(Writing and Speaking)

Medical Malpractice - NY Lawyers No Longer Required To Ask Clients To Pay Them ..

by: Gerry Oginski (August 28, 2006) 
(Legal)

Reel in New Clients and Keep Your Current Clients Mesmerized With Every Email ..

by: Heidi Saeter (May 15, 2007) 
(Business)

Functional Advertising - From Clients' Lips To Clients' Ears

by: Tina Rinaudo (August 21, 2007) 
(Business/Advertising)