|
Big client is slow to pay
|
 |
October 3, 2000: 1:18 p.m. ET
Require a deposit in advance for new work, then deliver top-notch service
By Jane Applegate
|
NEW YORK (CNNfn) - Dear Jane: We have a client who does a lot of business with our company ($100,000 in four months). The problem is, they pay us in 60 to 70 days, which puts us in a cash crunch. It's hard for us to pay the expenses related to doing their work. Is their business worth keeping, or should we tell them to get lost?
Keeping the cash flowing is the toughest issue for most entrepreneurs. If the client is a good one, you might tell them that you have a new payment policy for clients both old and new. A deposit of 30 percent to 50 percent is due to your firm before you begin any new work. This is very reasonable and has been instituted by several professional services companies I've profiled.
We require a 50 percent deposit to book my speaking engagements. If an organization or event manager wants me to save the date and turn down other work, they have to send the deposit with a signed contract.
Many small business owners feel small and powerless when it comes to asking clients to pay them in a timely manner. But if you do good work and provide excellent service, your clients should be willing to keep you happy -- and in the black.
|
|
|
|
|
|
SBTV.com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
