Every so often in running a business you end up with customers who don\u2019t pay their debt either on time, which isn\u2019t all that bad since they\u2019re eventually paying still, or those who go into bankruptcy or just decide to not pay their suppliers. This one supplier may be you.\u00a0<\/p>\n
So how do you deal with such customers? First answer I\u2019d give is more of a pre-emptive one. When first starting to supply to a new customer, never do credit sales and either require a prepayment or payment at the spot when making the sale. This way you can protect yourself from the risks of not knowing the payment discipline of a new client. It\u2019s all about trust in business, but not blind trust.<\/p>\n
Another method for protecting yourself is always requiring a prepayment (note here that some legislations forbid you to ask 100% to be paid before so generally it\u2019s expected to be like 50% or something close). It means the customers must already pay something in order for you to start producing or shipping depending on what type of business you\u2019re in. It\u2019s a guarantee to you that the client is at least liable to some extent to pay up the rest and they\u2019ve acknowledged it.<\/p>\n
And that\u2019s pretty much it. Binding people to contracts doesn\u2019t really give you much support because it\u2019s not the paper that pays the debt, but people. The best method to ensure you\u2019re getting paid is to make some form of a background check for your customers, see if they\u2019re trustworthy and\/or require a prepayment.<\/p>\n","protected":false},"excerpt":{"rendered":"
Every so often in running a business you end up with customers who don\u2019t pay their debt either on time, which isn\u2019t all that bad since they\u2019re eventually paying still, or those who go into bankruptcy or just decide to not pay their suppliers. This one supplier may be you.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,78],"tags":[],"class_list":["post-3893","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-8-revenue-and-receivables"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3893"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3893\/revisions"}],"predecessor-version":[{"id":3894,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3893\/revisions\/3894"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}