>Basically what you're doing is extending a line of >credit to your client. You should get the client's >permission to run a credit report and get all the >information you possibly can that you might need later >to track him down, sue him, and collect. If you see >problems on his credit report, such as recent charge >offs, consistently late payments, judgements, >bankruptcies or any other red flags, I'd ask for >collateral. Ask him to give you the pink slip to his >car or put a lien on his house until you get paid. > >All the typical terms of credit should apply. He >should be paying interest and when he's late he should >be assessed late fees. If you stick with typical >terms and don't make up wild things, then I believe >most courts would uphold the agreement. And if he >knows he's not credit-worthy, he'll understand when >you reject his offer to pay you over time. > >You can also tell him to get a bank loan for the value >of the contract and get paid that way. If he's credit >worthy, then a bank should have no problem extending >him a line of credit. If they don't approve him, >that's another red flag. If a bank won't approve him, >why should you? > >There are also private financers that work with people >like ourselves who do the same thing as banks, but are >more willing to take the gambles because they charge >higher rates for the credit. Typically, these private >finance companies will pay the developer on typical >terms we're all used to with progress payments are >lump sums. Here's one such company that offers >financing: http://www.lease-smart.com/ > >Ask for the business plan and read it. If he doesn't >have one, that's a major red flag. If he DOES have >one, does it seem to make sense to you? > >Generally, I'd turn away any client that didn't >already have the money up front before starting a >project. That doesn't mean I'd ask for it all up >front, but, I always make sure that a client has the >ability to pay before I begin work. And as a result, >I've never been stiffed. > >---mark > > >--- Jeffry Houser <j...@farcryfly.com> wrote: ><http://www.amazon.com/exec/obidos/ASIN/0072225564/instantcoldfu-20> >> My Books: http://www.instantcoldfusion.com >> My Band: http://www.farcryfly.com >>
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