I am seeing and hearing a lot of noise at present around late payments from clients and issues collecting aged debt.

In most cases, the work has been done and for one reason or another, the payments are delayed, causing anxiety over cash-flow and straining the client relationship.

This problem will only get worse in the current climate unless you change your approach.

I have been there.

Many years ago, a retainer client made excuses for not paying an invoice for the previous months work. They promised a payment soon and cited cash-flow challenges.  Before I knew it the month end was up and they owed me two months with similar excuses. By the end of month three, there was clearly an issue and guess what – the business went into liquidation and I received zero.

At that point, I changed the way I invoiced to always be paid up front and now, rarely do I commence work until the money is in the bank.  Some potential clients don’t like this but I am not prepared to take the risk again.

I am working with a client right now.  Her clients were never paying to terms (for various reasons) and she was constantly worrying about having enough funds to pay the wages and spending too much time chasing debt.

We changed the system.

Read how... 

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