For the first time since I started my business , I have been having issues with a couple of clients paying their bills on time. Before I started my business, my whole professional life has been in radio and a sales person for them for over a decade, The radio station is set up that you are paid on what you collect, rather than what you bill. I am eternally thankful for this method. It has made me stronger as a business owner. When your next meal depends on how well you collect on your invoices- you get really good at going to get your money each month.
A common obstacle for some business owners is asking for the dollar in the first place, and then there is sometimes an issue getting them to pay on time. While I have no struggle with the former, I am amazed at how many of my fellow small business owners are lax to pay my measly tab in a timely manner. I know that business is business but I am a little unnerved that these are the people that know better than anyone else how important it is to be paid in a prompt manner...and they just don't do it. That is why I was drawn to work with them in the first place, because I thought they would be the ones who were most sensitive to these kind of things. While a medium size business can have a $400 or $500 receivable that goes 90 days out without feeling it, that is a huge chunk for me. This week, I had a client texted me, I have many bills due...I will pay you when I can. Because, I don't have many bills due, right?
Although there are policies that I am putting in place, it really shakes my small business morale that people don't do the right thing for one of their own. How do you deal with non paying clients?Pin It