Situation: A company has clients who are not paying on schedule for projects. If the company stops or delays work, the clients say this is why they aren’t paying. The CEO needs to find a solution that clarifies and codifies responsibilities of both the company and its clients. How do you avoid payment pickles?

Advice from the CEOs:

• Look at the contract templates and adjust them to better meet the company’s needs.
  • Change the contract obligations – so that the company is not liable for failing to complete on time when the client does not pay.
  • Increase the frequency of client payments so that the company is paid on a more timely basis.
  • Document all payment promises in the contract, including clear penalties for untimely payment and the company’s ability to stop work if payments fall short.
  • Look for an insurance product that insures the company for clients’ failure to pay – include the cost of this policy in the job quote.
  • Always hold back something critical until the final payment is received.
• Rebrand the company to improve the business proposition.
  • Highlight the founders’ credentials – use this credibility to differentiate the company from the competition.
  • Expand the company’s presence in customized solutions, tailored to meet customers’ needs.
  • Work the high-end solutions network to get to the high-end clients.
  • Obtain D&Bs on clients before signing contracts.
  • Find the founders passion and focus on this to build the business.
  • Build what the customers want and deliver on schedule.
  • Present multiple options to new clients – a basic option for a competitive price, with add-ons similar to car dealers who use add-ons to boost the value of the sale.

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