Chasing payments
Understand why payment terms risk management: deposit before starting eliminates the 'completed work, no payment' scenario.
In this lesson
Chasing payments is part of Business Money Management. This preview shows how entrepreneurship-lab connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: A client owes you 30000 in local currency for work completed 3 weeks ago. They have not responded to two polite WhatsApp reminders.
What you need to know
Payment terms risk management: deposit before starting eliminates the 'completed work, no payment' scenario. New client 100% upfront is a standard professional practice — it filters out non-serious clients. Written terms create a contractual expectation — invoices referencing agreed terms are more collectable than verbal agreements.
Real-life example
Real-life money moment: You have 3 clients who owe you money: Client A (5000 in local currency, 1 week late), Client B (50000 in local currency, 4 weeks late), Client C (10000 in local currency, 2 weeks late). Prioritise your collection effort. — Collection prioritisation: (1) Amount — largest impact on cash flow first. (2) Age — older debt is harder to collect; early intervention prevents ageing. (3) Effort-to-return: 50,000 warrants phone calls; 5,000 warrants a WhatsApp. Allocating effort proportionally to impact maximises cash recovery with minimum relationship damage.
Progress Penguin connection
In Progress Penguin, complete or review one practical action connected to “Chasing payments.” Use this lesson objective: Understand the key ideas behind chasing payments. Record what you checked, the evidence you used, and your next step.
Activity preview
Choose the best money move
Use what you just learned. Choose the option you can explain.
Quiz preview
When customers owe you money, you should:
A client owes you 30000 in local currency for work completed 3 weeks ago. They have not responded to two polite WhatsApp reminders. What is your next step?