Prof K, unfortunately you can't think the best of all people. Most are o.k. and do you know what? They are the ones that understand why you have to be careful giving credit to them.
The ones that complain the loudest are actually the biggest risk!
Beltandbraces is basically spot-on in his point about never handing over anything without receiving payment first. However there can be a couple of problems with this.
Firstly, some customers might rightly consider it a risk paying before receiving the 'goods'. In these circumstances a good idea is to ask for 50% 'up front' In this way both sides take 50% of the risk of the other not meeting their obligations. Surely, no-one can argue that this is a fair compromise for both sides.
Secondly, as jasper pointed out large multi-nationals won't play this game because they consider that they are not a financial risk and get angry if you suggest such by asking for 50% up-front. In real terms they are not a risk of being able to pay. Quite simply, the chance of a plc going bust is very very small and it is worth taking the risk with them, but not with anyone else until they have a proven payment record.
In all circumstances it is important to make it crystal clear in advance what your customer will get for their money and when, along with confirmation of when payment for what they receive is due by. The customer must agree to all of this in writing before starting work. If they won't, then 'drop' them and find others who will.
It is all commonsense.
Always remember that in business you only work to make money to allow you to live the life you would like. If you don't protect yourself you'll be working for far less or even for nothing.
If you are good at what you do, you'll always find enough work.
