Sometimes, despite your best efforts, you may run into a period where clients are late in paying. Perhaps it’s not your fault that clients have paid late and you’ve been good at giving clients a short credit window. So what do you do when you’re faced with a delay in payment?
- Take steps to collect any other outstanding payment
- Get other clients to pay a deposit
- Set up an emergency fund in advance
- Save regularly and use a budget
- Consider a side job if cash flow will be tight for a while
- When times are good, pay down debt
- Look to manage the peaks and valleys in consulting income
- Evaluate your credit options, if you’re in a position to manage credit responsibly
What steps do you take to manage payment delays?