Protecting Your Business, and Your Bank Account, in Case Clients Don’t Pay (Published 2016)

Some areas of opportunity: • First, stop saying, “Well, this is just the way it is in our industry.” • Have your available cash reported DAILY, with a short explanation of why it changed in the last 24 hours, and chart it against accounts receivable (AR) and accounts payable (AP) weekly. You’ll learn so much more about your business when you see ho

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Instead of chasing non-paying customers after the fact, wouldn’t it be better to assess that risk up front and decide if you even want to accept that sale? We tell our clients, “We’re glad to have your business. These are our payment terms. If you don’t pay us in 30 days, we’ll charge you 2 percent of the outstanding invoice.” You don’t become succ

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I’m a very trusting person by nature, and I tend to believe people more readily than is sometimes wise. In this business, you must trust people to a degree, but it is crucial you make sure what you’re buying is not only legitimate, but that the account debtors have received the goods or services, intend to pay without any issues or offsets, and wil... See more