Moonlighting Entrepreneur: When To Cut Off Late-Paying Clients

by Trish on April 15, 2009

In the past year I’ve had a great client. I really enjoy working on their projects. The work is nice, the subjects are interesting, they are flexible with the time frame. They just have a problem paying me on time.

It’s frustrating (I’m not a bank) and a bit irritating (I have bills to pay that don’t let me wait 60 days to pay) and I think the time has come to cast them off to the great beyond.

Why?

1. It’s been the past three projects. A very wise colleague once told me it takes three projects to really get to know a client well, and to find out if their projects are worth your while. Three great projects, three times having to call (at 60 days) to ask for a paycheck, and three email apologies from the CEO who promises this is the last time.

2. The contact loves to chit chat, but forgets to turn in invoices. Not a great sign. No matter how lovely the company is or how much fun it is to chat about life and weather and whatever, if you have to remind them to pay you, well, how much does all that fun cost you?

3. You call and call and nothing happens. Now, I know I’ll get my payment from this client within a week once I remind them, but sometimes, you contact them and they just ignore you. A very good bet you should stop all current work until you’re paid, and not accept anymore work in the future.

Hopefully, all your clients pay on time and willingly (I mean you did the work on time and willingly, shouldn’t they return the favor?) and none of you have this problem.

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