Bad Clients

Post image for Dispose of Delinquents and Deadbeats

Avoid taking on such clients, and establish penalties if they slip through your net. Delinquent clients are like an acid drip: They eat away at your profit margin and corrode your cash flow. And once a client moves from late-paying to delinquent, it’s usually too late to expect a quick and happy ending. Just as […]

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Trying to collect on a delinquent debt is rarely a profitable experience – in any sense of the word. You can prevent time-consuming lawsuits by becoming savvier about choosing the right clients. Your productivity and success will depend on your ability to pre-screen for these problem people so that you don’t take them on in […]

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“Every time I call, it’s a [expletive] debate,” Devon fumed. “And I gotta call every month to get paid. I can’t stand it!” My client, Devon, runs a tech support and solutions business. He’s been grumbling about this business customer for many months. How the company never pays on time. Or follows the “rules” in […]

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I used to get so angry when things wouldn’t work out with a client. You know the type: they get themselves into a mess well before they even come to you and then expect you to clean up the mess, set the world aright on its axis, and realign the constellations . . . all […]

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My college roommate, Jenny, called me at the end of an aggravating day at her graphic design firm – to vent. “I wasted the entire day trying to chase down customers who owe me money,” she said. “I’ve called them on the telephone. I’ve sent e-mails and letters. I’ve even met with some of them […]

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The Thursday morning started calmly enough. In the office early, a fresh cup of steaming coffee by my side, I was ready to dive into the day’s work. Then “Alice” called. The wife of a client I had served in a small matter several years earlier, she had an urgent situation: she needed to sell […]

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A key factor in getting paid by your clients is taking on the right clients to begin with. Yet, even assuming you’ve figured out your target market and what you can provide, there emerges that indispensable factor in client – and indeed all – relationships: gut instinct. What does your gut tell you when you’re […]

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If you don’t want to get stiffed, know ahead of time how you plan to collect on overdue receivables. In any economy, there’s only one thing worse than not having work to do. That’s spending the time and effort to do the work . . . and still not getting paid. Frankly, I’d rather be […]

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In today’s turbulent economy, a slow-paying client can generate more anxiety and frustration for your company than a no-paying client. At least with a no-pay, you know what you need to do (sue) and the steps you need to take. Not that you look forward to it, of course, but at least you know . […]

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Q.:  I recently started a janitorial cleaning business. Our first job was subcontracted from another cleaning business. We completed three months of work and have yet to receive any payments. Two months ago I met with the cleaning contractor owner to come to an agreement. We signed a promissory note detailing a down payment and […]

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