E426: Ask Coach – Dealing With A Slow Paying Client
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.
- Understand why the pay is slow
- Paperwork
- Money flow
- Poor management
- Prevent what you can
- Know your client – know what they expect
- Make adjustments to better absorb the slow pay
- Do the paperwork properly the first time
- Keep an open line of communication
- Know your client – know what they expect
- Be smart and proactive
- Don’t make accusations – people in glass houses shouldn’t throw stones
- Do you pay your people timely?
- Follow-up on your invoices
- Protect yourself
- Know the time limits on filing any liens or claims and always protect your rights
- Don’t make threats until there is no other option
- Don’t make accusations – people in glass houses shouldn’t throw stones