Two recessions in the first decade of the 21st century cured most in professional services about gentility when collecting on overdue accounts. Few are reluctant to use all measures, including lawsuits, to get the money due them.
The legal sector, reports THE NEW YORK LAW JOURNAL, has become just as earth-bound about accounts receivable. It cites the example of Epstein Becker which filed several lawsuits to collect $390,000.
Of course, there are other less direct methods which can be more effective and less expensive than lawsuits. The classic one is to seed rumors in the right places that the organization seems to be experiencing cash flow problems. Likely, the public relations or booking agency which has a reputation for spreading that kind of gossip won't get stiffed. Rarely will any client play with them. Often simply being known to be well-connected will do the trick.
The digital version of that kind of deterrent power is to have sites with plenty of reach. Clients and customers won't dare not pay on-time. Some will even prepay. Needless to say there will always be flamboyant gestures taken when irked about late payment. The web developer takes down all the content.
The truly amazing thing is that, with this broad range of tactics for collecting on overdue bills, some folks still don't pay.
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