Bensquare

Through out this few years in business, I learn not to judge a person as good /bad at the beginning because normally, they need you and they want your trust. Then after some times, they become more like your friends and you take off your security guard & give credits up front on your sales. It's when the things went wrong. 

Recently, I got a couple of invoice I couldn't get the money back because

1) customer closed the business and had no money to pay back

2) customer changed to another supplier, so he doesn't need me.

In the end, I can't blame them because it was my decision to give credits and thought it would be ok just like what it was always. What have I learnt and mininise it ?

• No 1 should be not to give credits
• If I do, make invoice in a shorter period of time (etc, if you use to send invoice every month, then you it every 2 weeks)
• If outstanding balance reaches certain level, chase the money first till you give out more.
• Have measures in places where you can put some damage to him / her ( lilke me, I sell software where I can disactivate his / her license). I lose money, but sure he will have to buy a new one
• Tell your story on forum / social networking site especially the one he / she appears, so others could know what happened. In business, you could afford to lose money, but not reputation.

Having said that, out of these few years, I only had a few invoice I couldn't collect the money as most of my customers or even programmers are far more honest and trustful than I imagine.