Every day in the world of business, a client reports to their Service Provider that they are unable to pay for the services provided them. Usually, the client intends to pay and is only asking for an extension, to which most providers, however reluctantly, will agree. After all, getting paid late is better than not getting paid at all, right?

Maybe. But there comes a time when Service Providers must decide whether allowing a bad habit to develop is worth the potential long-term costs. Bad habits, after all, are notoriously difficult to break – even among those with the best of intentions.

The cost to Services Providers for the late, or even worse, non-paying customer is more than most initially realize. Any time you experience an interruption to your cash flow, you must work a little harder to avoid interruptions on your end. You must sacrifice in another area, to lessen its effects. At first, this will be manageable, but if allowed to become the acceptable practice, it won’t be long before you will be trying to make up for all those deficits, wasting precious time and energy that you could have been put to more productive use.

Another overlooked cost, is the toll it can take on your health. Again, this won’t happen right away, but rather over a period of time, and subtly. By the time you realize the level that the stress has reached, it can be manifesting itself in your daily life in the form of health issues. Constant headaches, stomach discomfort, or just the general feeling of being ‘tired and irritable’, can all be the result of too much stress. And any time you don’t feel well, you will be less likely to perform well, which can directly affect your customer service, sales, and ultimately your bottom line.

Business savvy is not about being nice. It is about being on top of your game – and most of all it is about being wise. It is not a wise practice, in any area of your life, to allow others to disrespect your generosity and take advantage of you. But, especially in the business world, you cannot appear to be weak and spineless, or even worse, desperate. You must be able to recognize when enough is enough and not be afraid to wisely refuse to work with those who reveal themselves consistently irresponsible when it comes to paying.

Of course, you must be flexible enough to bend when necessary. Unforeseen circumstances can happen to any of us. The same measure of wisdom is required to ensure that no one is ever needlessly offended. Business relationships are extremely valuable. A business relationship that has been working well, and suddenly experiences a "bump in the road", should be given the proper consideration. But when a client is unable – or perhaps incapable – of paying on time for services, it does neither party any good to keep up the façade. An honest business relationship encourages the truth, and sometimes the truth is, "This is just not working." It just may be the biggest favor you ever do yourself – and the client.