A bad client costs more than a lost one. They consume time, delay payment, dispute agreed work and often end up owing money you spend further money chasing. The protection is screening before you commit, and most of it is free: check who you are dealing with, take a deposit, and put the terms in writing.
The warning signs are consistent enough to act on.
Check who you are actually dealing with
Confirm the company is registered and in good standing through the Companies and Intellectual Property Commission, and check that the person signing has authority to bind it.
For meaningful credit, ask for trade references and speak to them. Suppliers talk to each other, and a business with a reputation for paying late usually has it for a reason.
The warning signs worth acting on
Pressure to start before terms are agreed, reluctance to sign anything, haggling hard on price at the outset, vague scope with an insistence that details be worked out later, and asking for work on credit on a first engagement.
A client who disputes your price before any work has been done will dispute your invoice after it. That pattern is reliable enough to decline on.
Deposits and staged payment do most of the work
A deposit filters out clients who never intended to pay and funds the materials so you are not lending them money. Staged payments on longer work keep your exposure limited at every point.
Define the scope in writing, including what is not included and what a change costs. Most payment disputes are actually scope disputes that were never written down.
Recovering money without losing more
Invoice immediately, follow up on day one of overdue rather than day thirty, and keep the request factual. Most late payment is disorganisation rather than refusal, and prompt polite persistence resolves it.
For genuine non-payment, a letter of demand often works. Small claims processes exist for modest amounts and do not require an attorney. Weigh the cost of pursuing against the amount, and stop supplying immediately rather than increasing your exposure while hoping.
Frequently asked questions
What is the cheapest protection against bad clients?
Screening before you commit: checking registration and authority, asking for trade references, and taking a deposit.
What are the clearest warning signs?
Pressure to start before terms are agreed, reluctance to sign, hard haggling upfront, vague scope, and asking for credit on a first job.
Why do deposits matter so much?
They filter out clients who never intended to pay and stop you funding their materials out of your own cash.
What causes most payment disputes?
Scope that was never written down. Define what is included, what is not, and what a change costs.
How should I chase late payment?
Invoice immediately and follow up from the first day overdue, factually. Stop supplying rather than increasing exposure.
Further reading
Originally published in August 2018. Updated September 2026 into practical guidance on screening clients and recovering money owed.
