If you’ve been in this industry more than a minute you probably have had some type of money issue with your customers.  Whether it’s paying late…chargebacks…or not paying at all, this is business and those things happen.  You just want them to happen…not so much.

Well, there are a few things you can do to spare yourself the drama of collections and the bad will that can accompany the process.

1.  Ask for a Deposit–While this is not as common as it needs to be…there are some companies that are very successful with collecting deposits prior to production.  Perhaps they have a very unique product or arrange to give their customers a small percentage off.  Keep in mind this is a bit of a unique request so try to be flexible with the details.

2.  Use a Reputable Showroom or Factor–People that screw people don’t always discriminate…but they may hesitate to play games when showrooms and/or factors are involved.  Using these outside agencies for sales and financial support can not only be extremely helpful with the cumbersome process of collections but they can also help to separate your brand from the big bad creditor.

3.  Don’t Do Credit--Some stores will demand credit in order to buy.  If its a fantastic, brand building store you may want to check their credit and opt to take the chance.  Otherwise defer to charging credit cards before shipment or collect COD.

Most importantly be clear on your terms and conditions and make sure expectations for delivery are explicit.  Pull out important tid-bits from your fine print and make sure your customer understands.