Doing Business With a Nonpaying Customer

Two people shaking hands. Only their forearms are visible.A former customer – a nonpaying customer – called and wants to do business again. Should you do business again with the nonpaying customer?

For some, the answer is an unequivocal no. For others, it’s a maybe. Such was the topic of conversation at this past week’s LMNOP workshop. This is the dilemma for many inside and outside the New York real estate industry. Continue reading “Doing Business With a Nonpaying Customer”

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Does Bad Debt Necessitate a Larger Sales Team?

Drawing of a team layout on a table.Bad debt costs money.  But do you know how much? Not getting paid has cost you the anticipated profit, maybe some or all the cost involved in servicing the client, and maybe more. Projections did not account for the increased amount of the bad debt. Assuming you can recover some of the bad debt with the help of a qualified collection attorney, you will need to increase your sales team to make up the rest. Continue reading “Does Bad Debt Necessitate a Larger Sales Team?”

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Fear of Enforcing Your Rights to Payment Can Put You Out of Business

Sign that reads "going out of business."It’s hard to know when to stop doing business with a non-paying client and start enforcing your rights to payment. Failure to make the decision can put you out of business.

Smart credit policies protect you from doing business with those least likely to pay. And smart collection policy designs maximize recovery on receivables. But these policies are only effective if you use them. Continue reading “Fear of Enforcing Your Rights to Payment Can Put You Out of Business”

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