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Legal Advisory | Global Privacy and Data Protection | Governance and Regulatory Compliance

Getting clients to pay for your services in good time is a challenge for many entrepreneurs and businesses. And the challenge can harm any business if not dealt with proactively. One of the biggest responsibilities of business owners is managing cash flow. Without a thorough process to protect yourself, you could end up working hard for your customers/clients, piling up unpaid invoices, and sometimes getting ripped off. This is a nightmare scenario. But it’s more common than you might think. If you’re on the fence about accepting a client but need the income, here are a few things you can do to protect yourself: 1. Collect at least 50 percent of your project fee up front – before you begin the project. If you are able to collect 70% upfront then you are safe. 2. Schedule milestone payments throughout the duration of the project. 3. Consider working with them on a smaller (trial) project to make sure you can collect before moving on to bigger commitments. 4. If you’re able to do it, consider working only with established companies who have a good reputation for paying their freelancers and partners on time and in full. If you do run into a client who won’t pay – and you’ve already done the work – realize that you’re not alone. Businesses get burned at one time or another, but a little preparation up front can reduce your risk. See my 2021 guide to helping businesses get paid and recover unpaid invoices. #debtrecovery #invoicing #smallbusinessstrategy #businessadvice #startuptips #businesstips

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