How to spot a client that might refuse to pay you later
West Seattle bookkeeping company, Halsey Resources, wants to give you good advice on managing your money. That not only involves the money you have but also the money you expect to have. As a business owner, we all take on new clients in hopes of a long term business relationship. That doesn’t always happen. Some customers are not good with their own money and their debt to you might be the first thing they walk away from during tough times. Keeping your eyes open for red flags early will prevent or limit the amount of your loss.
Here are preventative actions you can take and things to look out for when signing a new client:
- What can you find out about the potential customer through public records?
- Are there any lawsuits or tax liens on the client?
- Is their business and/or professional license current?
- Have they recently changed their company name?
Before you sign up the client for services:
- Make sure there is one person signing your agreement and that’s your main contact
- Make sure they don’t spring new request on right before signing on to your proposal
Once they become your client, monitor their payment habits:
- Are they paying late when they normally pay on time?
- Did they bounce a check?
- Are they suddenly paying from a new account?
- Again, did they recently change their company name?
Communication:
- Is the client ghosting you when you send a bill?
- Do they respond to your calls?
- Do they respond to your emails? Getting a return receipt notice is handy to know if they are just ignoring you.
- Do they respond to mail you send them? Another tip is to send registered mail when needed.
One of the best ways to get good-paying clients is through referrals. If a friend of a friend sends business your way, there is a small amount of vetting that’s already been done for you. In any case, trusting your gut instinct is important, but doing a little homework will also go a long way.
Questions? Halsey Resources is always here for you. Contact us today!
