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What do you do when clients don't pay?
#1
I think it depends very much on what business you're in.

I am a freelance graphic designer. From time to time, I get lowball clients who refuse to pay. So what I do now to secure all my payments are as follows:
  1. Make sure your business is registered, even if it's a freelance entity.
  2. Always have a contract or agreement of sorts. Make sure your contract is well written and protects both parties well. It could go a long way and give your clients the confidence to work with you too.
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#2
I think it would also help when you tell them to pay before giving out your services, or better still you tell them to make half payment or at least more than half of the agreed amount. After the job is done, they can make full payments.
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#3
I don't like selling on credit. It is better to have those products with me than deciding to sell on credit. I don't see the rationale behind selling on credit as that is the fastest way to make a mess of the business.
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#4
First of all, I make sure that I get a down payment before I render any service to anyone. And it must be up to 60%. That would be easy to forgo if the client refuses to pay.
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