I’ve ramped up my client vetting over the last six months. Basic checks like references and requesting a partial upfront payment have made a huge difference.
Now, I haven’t dealt with late payments at all, and my cash flow feels much steadier.
Good idea to ask for upfront payments
Vetting saves so many headaches. I learned this after chasing payments for months.
Here’s what I do now:
- Quick LinkedIn check to see if they’re real
- Ask timeline and budget upfront
- Get 50% before I start anything
- Ask for references from other contractors they’ve worked with
The upfront payment kills most time wasters. If they won’t pay anything upfront, that’s a red flag.
Clients who pass vetting also communicate way better during projects. They’re more invested from day one.
I just get half up front now. Fixes most problems before they start.
References are a game changer. I used to skip them because it felt weird, but now I ask every potential client for two references from recent work.
Good clients hand them over immediately. Sketchy ones either disappear or make up stories. Had one guy claim his “previous contractor moved to Thailand” so no contact info available. Yeah, right.
I also ask how they found me on our first call. Client referrals almost never have payment problems. Random internet leads? They need way more screening.
Upfront payment works too, but I do 30% instead of 50%. Easier to close and still weeds out the problem clients.
Keep it simple - skip the fancy credit checks. I ask for 50% upfront with net 15 terms. If clients balk at that, they’re not worth it. Been doing this for years and it works. Plus, clients who pay fast usually send you other good clients.
Phone calls first help me figure out if they’re serious and actually have money to spend.
I always ask for their website or LinkedIn. No online presence? That’s sketchy.
For deposits, I go with 25%. It shows they’re committed but won’t scare off the good ones.