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In this video, I talk about the three main types of business contracts to have in your business:
1. Client Contracts
2. Hiring Contracts
3. Rental Contracts
If you have any questions about this topic, you can reach me at [email protected]
You may have a client or two who are not prompt in paying their invoices with you. This is an issue for the cash flow and financial stability of the business.
Here are some tips for collecting accounts receivable now outstanding, and improving the situation in the future:
Check the Contract
Are the fees due clear in your client contract? What about payment terms? Have you provided that interest will be charge on overdue accounts? Should you require a deposit, interim payments at certain milestones, or a credit check?
It is best to have an established practice for following up with clients regarding their overdue account. The invoice may have been forgotten, misplaced or sent to an old address. A follow up phone call may be uncomfortable but is a good way to find out if the client is having cash flow problems or has some other reason why they haven’t paid.
A lawyer can send your client a scary letter indicating why the debt is owed and when it...
Has anyone ever told you that as a business owner that you NEED to have a shareholders’ agreement? Did you wonder what it was?
This article sets out some of the basics.