Posts Tagged Payments
Bad debts
Bad debts. Is it a taboo subject?
I guess sooner or later it must happen to every business. The trick is how you deal with it.
This year Bizpro has had more than it’s fair share of non payers. No less than 3 clients have ‘done the dirty’ on us this year so far, and whilst that doesn’t sound like much, to a small business it can be crippling. We’re lucky in that we have a ’safety net’ to see us through the lean times, but even so, the point is it’s just not cricket!
If a client is having difficulty in meeting payment and they keep you informed, that’s one thing, and most suppliers, me included, tend to look more favourably on.
However, It’s quite another when they go completely quiet on you and ignore your calls in the hope you will go away. Truth is, it’s not going to go away. Ignoring your situation will only make things worse. I’m a lot more strict than I used to be. This is out of necessity. My payment terms have always been fairly generous for a small business at 30 days, although this will shortly be changing to 7 days. After this period is up, if I’ve not received payment they get just one reminder to pay within seven days – after that it’s straight to the filing a claim online. After all, I’ve provided the service, the client has had the benefit, the least they can do is pay for it on time.
My advice to anyone struggling to get payment out of a client is not to put up with it! Don’t be afraid to talk money. Make your payment terms clear at the very start of any contract or relationship. Establish your boundaries, and stick to them. Remember, you’re worth it, and so is your business!
