Nonpaying customers create hardships for businesses

Nonpaying customers create hardships for businesses

On Behalf of | May 14, 2020 | Business Law |

When a customer or client does not pay for goods or services provided, it may create a domino effect of struggle. Nonpaying customers may be especially difficult for small and midsized businesses. While there is no foolproof method for ensuring every customer will pay what they owe on time, some Louisiana business owners have developed methods for protecting their businesses and effectively pursuing delinquent payments.

Ideally, a business owner can be proactive by establishing policies that improve the chances of receiving payment when it is due. This includes screening clients to avoid those who have a history of delinquencies. Having a strong contract with a thorough explanation of payment policies and schedules is also an effective way of setting the tone with a customer from the beginning.

Unfortunately, even these smart moves do not protect every business from a client who can pay but does not. Some entrepreneurs find that friendly persistence can remind forgetful customers what they owe, but other clients may resist even this method. Business owners who are at risk of losing significant money from a nonpaying customer may have to weigh the cost in time, money and resources for pursing legal action.

When facing the dilemma of nonpaying customers, Louisiana business owners may feel frustrated and unsure how to proceed. Discussing their options with a skilled attorney may provide answers and guidance. An attorney may also offer sound advice for establishing a payment policy and strong contracts that may save a business time and money in the future.