Every business owner knows this all important rule – a sale is not a sale until the cash is in your bank account.
When I am working with a clients to collect on past due invoices, I often call their clients to find out why invoices are not being paid. During one of these calls the business owner said “I am waiting for people to pay me before I pay you.” This person went on to tell me how no one is paying their invoices. I responded with a smile on my face and perhaps some laughter in my tone by saying, “I know there are clients that I have to call every week to pay their invoices.” They said they would drop off a check by the end of the week. This person was six months behind in paying and I talk to them every week.