Ensuring that Clients Pay
I have evolved some simple procedures to ensure payment:
1.) For design work 20% or $600.- advance payment and the reminder before delivery.
This avoids tyre kickers and not so serious clients. If the client declines the loss is less
if he/she does not pay at all.
2.) For manufacturing it is 50% deposit and the reminder 7 days prior to delivery.
Since implementing this procedure I have had no more outstandings.
Any potential client not agreeing to these terms does not understand that I am not a bank financing his project.
I do the same to my suppliers; 50% deposit and the reminder before delivery.
The only unhappy people are the non paying ones whom I can do without.
