 Re: Effective Credit policy
I've only had two bad payers and I've had to write off the amounts as a bad debt.
Basically I have a subscription based service with three tiers. 5hrs, 10hrs and 20hrs a month. The more hours you use per month the less you pay. Client credit cards are processed on the 1st of the month for the following month (eg, 1st Feb for the month of February) and I issue a receipt for the payment. If the credit card does not get processed all work is stopped. I don't provide credit because I'm not a bank. I have a team of subcontractors that I need to pay on time and this helps my cash flow immensely.
With my hosting website, if clients don't pay by the due date, their website space is disabled until payment is received. Not getting their emails usually get's their attention and payment is normally if not always received before the due date.
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