Managing our cash flow can be very challenging when dealing with a slow-paying client.

Q: What’s the best way to deal with my slow paying client?

A: Work closely with them to eliminate any hurdles and keep communication going.

1. Understand why the pay is slow
   1. Paperwork
   2. Money flow
   3. Poor management
2. Prevent what you can
   1. Know your client – know what they expect
      1. Make adjustments to better absorb the slow pay
   2. Do the paperwork properly the first time
   3. Keep an open line of communication
3. Be smart and proactive
   1. Don’t make accusations – people in glass houses shouldn’t throw stones
      1. Do you pay your people timely?
   2. Follow-up on your invoices
   3. Protect yourself
      1. Know the time limits on filing any liens or claims and always protect your rights
   4. Don’t make threats until there is no other option