How to deal with, and avoid, the curse of non-payment in the age of coronavirus

Arabian Business, 3 March 2021: The coronavirus pandemic has brought the issue of non-payment to the forefront.

Even as the pandemic has hit everyone hard, the issue remains the camel in the room.

We all need to work and want to keep our clients happy, but when the ugly truth emerges that a client can’t or won’t pay, things can get sticky.

There’s been a big push over the last year to be a bit more understanding as the pandemic has wrecked markets everywhere.

But we all still have bills to pay, mouths to feed, and businesses to maintain.

Before beginning any new client relationship, whether it’s a three-year cash cow or a one-off project, setting the terms of agreement at the outset is important to ensuring payment is received. Drawing up a proper contract with specific clauses regarding non-payment makes it abundantly clear to a client you mean business; it also ensures they understand your terms.

Smaller firms – like mine – and freelancers seem to suffer at the whims of a client’s “jazz accounting” practices, but we can all take steps to avoid not getting paid by laying down some rules from the outset. Firstly, have the courage to ask for 100 percent of payment upfront. It sets the right tone. If that doesn’t work, then ask for…

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