Home – New Forums Money matters Bad debts, finding a better way to avoid them Reply To: Bad debts, finding a better way to avoid them

#1040207
Mynda – My Online Training Hub
Member
  • Total posts: 5
Up
0
::

Hi David,

To the contrary. In our Computer Consultancy business we estimate up front for labour only jobs too. We calculate roughly how long it will take to do the work and then get them to pay 50% of our estimate. Then the balance will be calculated accurately when the work is done. The balance could be more or less that our original estimate, but the point is we’ve at least got roughly 50% up front.

If they baulk at that then alarm bells ring for us and we don’t want them as customers. We’ve found 80% of our clients are happy with this approach. The other 20% are the ones who turn out to be hard to get the money out of, low value clients, require multiple phone calls and follow ups to get paid, diverting our time away from finding more of our ideal clients who value our work and are happy to pay.

With new clients we also get them to sign our estimate for the work before we go ahead.

We are more relaxed with our deposits and estimate approval after they’ve got a bit of a track record of paying on time etc.

Hope that gives you some hope. I’m happy to discuss it further if you’d like.

Mynda.