10. Prevention Is Key
“Cash is king!” Smart business practices reduce your risk of not getting paid.
9. Get It In Writing
If your agreement is in writing, you are much better positioned.
8. Money Now
Require deposits or payment up front. Accept credit cards. Insist on ‘payment on delivery.’ Offer incentives for prompt payment.
7. Systemize Payment
Invoice promptly. Follow up promptly on all late payments.
6. Just Say No
Don’t continue to provide goods and/or services to a customer who is behind in payments!
5. Don’t wait
The longer the account goes unpaid, the lower the probability of collecting.
4. Keep A Cushion
A line of credit or credit cards can help to cover times when cash is short.
3. Spend Carefully
Expand only when revenue projections are solid.
2. Plan Ahead
Plan for expenses that occur annually or quarterly such as taxes and insurance.
1. Go To Court If Needed
If patient and persistent follow up doesn’t work, pursue Mechanics Liens, and attachment of real estate and bank accounts.
Courtney Mayo also contributed to this article. Sifleet and Mayo are members of the business practice group of Worcester-based Hassett & Donnelly PC. They can be reached at 508-791-6287.
