12 Warning Signs Your Client Has Financial Problems
No one is immune from struggling in our current economy. Of course, throughout history there have been people that struggle even in a decent economy. It could be poor money management. It could be suffering the detrimental effects that come with job loss. It could be a life altering illness that renders someone unable to work.
As a business, when your clients can’t pay you, losses occur. You have less profit. You may even have to raise prices. If there are too many delinquent accounts, you may find yourself struggling to stay afloat.
Unfortunately, when clients have financial problems, they don’t always let us know about it. When we don’t know that there’s a problem, we can’t help them look for a solution. That’s why we’ve put together this list of 12 warning signs that your client is struggling with financial problems. If you notice any of these signs, you will be able to take a proactive stance with your client and become a problem solver.
- Your client suddenly stops making their payments on time. It could also be that they are no longer making the total payment or even a minimum payment on their monthly invoice.
- If you’re working with other businesses, you may read about or hear about a decline in profitability for your clients. Maybe they’re not getting as many sales or maybe their costs have increased. Both affect the bottom line and can make it difficult for clients to pay your invoice.
- When you see or talk to your client, you can tell that something is different about their behavior and usual attitude. They seem more down, depressed, or worried. When you notice that your client is behaving in a manner that is markedly different, check in and find out if things are going okay. Let them know that you are here to help.
- If you’re working with other businesses or if you live in a small community, you may begin to hear from others that things aren’t going so well for your client.
- It seems like your normally level headed client goes out of their way to find problems with the service that they received. Sometimes when people are short on funds, they will nitpick the service they’ve received (regardless of whether their complaints are relevant or unfounded) in an effort to get a discount or to get out of the entire bill.
- Your client tells you that they are looking for work or that they will pay you after they switch banks. Often, this is a sign that they are either without a job or that they have overdrawn their last account and hope to save what money they do have and stop it from going to bank fees.
- You find out that your client is selling a large amount of personal or business related items.
- Clients who once paid in cash, debit card, or check suddenly begin to pay for everything using credit cards.
- Your client needs to find a cosigner for your service or for another purchase.
- Your business clients tell you that they’re experiencing problems with their accounts receivable department.
- Your business clients are struggling with a decline in leads.
- Your business clients recently seem to have an increased amount of turnover. It’s hard to keep good employees in an environment that they know isn’t financially healthy. They don’t want to worry about whether they will have a job.
If you notice any of these signs in your clients, take the time to find out how they are doing. Being proactive can help both you and your client. You may have ideas that they don’t that could help them turn things around. You may be able to work something out that keeps their account from becoming delinquent. When we go out of our usual level of service and help people find solutions, we are able to show support to our clients which means we create loyalty. It can also help create referrals because you will become known as a service provider that cares.
No one is immune from struggling in our current economy. Of course, throughout history there have been people that struggle even in a decent economy. It could be poor money management. It could be suffering the detrimental effects that come with job loss. It could be a life altering illness that renders someone unable to work.
As a business, when your clients can’t pay you, losses occur. You have less profit. You may even have to raise prices. If there are too many delinquent accounts, you may find yourself struggling to stay afloat.
Unfortunately, when clients have financial problems, they don’t always let us know about it. When we don’t know that there’s a problem, we can’t help them look for a solution. That’s why we’ve put together this list of 12 warning signs that your client is struggling with financial problems. If you notice any of these signs, you will be able to take a proactive stance with your client and become a problem solver.
- Your client suddenly stops making their payments on time. It could also be that they are no longer making the total payment or even a minimum payment on their monthly invoice.
- If you’re working with other businesses, you may read about or hear about a decline in profitability for your clients. Maybe they’re not getting as many sales or maybe their costs have increased. Both affect the bottom line and can make it difficult for clients to pay your invoice.
- When you see or talk to your client, you can tell that something is different about their behavior and usual attitude. They seem more down, depressed, or worried. When you notice that your client is behaving in a manner that is markedly different, check in and find out if things are going okay. Let them know that you are here to help.
- If you’re working with other businesses or if you live in a small community, you may begin to hear from others that things aren’t going so well for your client.
- It seems like your normally level headed client goes out of their way to find problems with the service that they received. Sometimes when people are short on funds, they will nitpick the service they’ve received (regardless of whether their complaints are relevant or unfounded) in an effort to get a discount or to get out of the entire bill.
- Your client tells you that they are looking for work or that they will pay you after they switch banks. Often, this is a sign that they are either without a job or that they have overdrawn their last account and hope to save what money they do have and stop it from going to bank fees.
- You find out that your client is selling a large amount of personal or business related items.
- Clients who once paid in cash, debit card, or check suddenly begin to pay for everything using credit cards.
- Your client needs to find a cosigner for your service or for another purchase.
- Your business clients tell you that they’re experiencing problems with their accounts receivable department.
- Your business clients are struggling with a decline in leads.
- Your business clients recently seem to have an increased amount of turnover. It’s hard to keep good employees in an environment that they know isn’t financially healthy. They don’t want to worry about whether they will have a job.
If you notice any of these signs in your clients, take the time to find out how they are doing. Being proactive can help both you and your client. You may have ideas that they don’t that could help them turn things around. You may be able to work something out that keeps their account from becoming delinquent. When we go out of our usual level of service and help people find solutions, we are able to show support to our clients which means we create loyalty. It can also help create referrals because you will become known as a service provider that cares.
