0394: A Contractors Guide To Dealing With Customers Who Refuse To Pay

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 0394, And It's About A Contractors Guide To Dealing With Customers Who Refuse To Pay</strong></span></h1> <div>All construction contractors have experienced bad debt's financial pain, which is defined as a customer who refuses to pay no matter what you do.</div> <div> </div> <div>I've been there before, and it will probably happen again in the future. Owning and operating any business, including accounting, means sometimes you provide goods and services and not get paid.</div> <div> </div> <div>When you sat for an exam or a school test and knew the material forwards and backward, it was fast and easy. The exams and tests for the classes you struggled with were the opposite.</div> <div> </div> <div> <div> <p><span data-preserver-spaces="true">In your construction company, it is the same. It would help if you had the answers to develop understanding, which allows us all to let go of the past and move forward.</span></p> <p><span style="color: #0600ff;"><strong>Separate The Good From The Bad</strong></span></p> <p><span data-preserver-spaces="true">Not everyone who never pays you is a bad person. Sometimes things happen which are beyond their control.</span></p> <p><span data-preserver-spaces="true">We have clients who have experienced situations beyond their control in all of our companies, and when it is legitimate, we have been known to issue a letter stating the debt is canceled, and they owe us nothing.</span></p> <p><span data-preserver-spaces="true">Oddly enough, most of them paid the debt years later, and all of them were very appreciative that we treated them with courtesy and respect.</span></p> <p><span data-preserver-spaces="true">Some people are just troublesome, like </span><a href= "https://www.fasteasyaccounting.com/bad-bookkeeper-traits" target= "_blank" rel="noopener"><span data-preserver-spaces="true">Bad Bookkeepers</span></a><span data-preserver-spaces="true">, and I would rather be the person w