4 Important Reasons Why You Should Always Request Advance Payments From Customers
Cash is King, and you need those advances
I am sure that you have heard the saying that Cash is King. For a business, cash flow is its gasoline. Without cash, a business stops operating. And this is one of the reasons why you should be requesting advance payments from customers.
In this article, I want to explain all the reasons why you should be requesting advances. I used to be the nice guy telling customers that they could pay me later. This got me into all sorts of trouble.
I attracted the worst type of customers, the flaky buyers and the types that always seemed to be broke, but they were waiting for a ‘payment to come through.
I now know better. Whenever I start a new collaboration, I always ask for an advance. I may be a bit more flexible with older customers, but I request cash as much as possible. I have compiled a list of reasons why you should be asking for advance payments from customers:
Get the customer invested in the project
Whenever you start a new project with a customer, you want him to be fully invested in the project’s success. If he is told that he can pay later, he might deliberately delay the completion…
