We are all going to see a lot of this kind of thing in the next year or two,
I fear. Even healthy companies are holding on to their cash these days, and
it is going to get worse before it gets better.

In terms of what you should do, my question would be what does it cost you
to continue to service the client. If your cost is negligible, or a fixed
cost like server hosting that you pay regardless of how many clients you
have, consider keeping them around as a good will gesture. If they go BK, as
a debt holder you might actually get some money back, but more than likely
you will end up writing off that $4K as bad debt, so why fight about it? If
they survive, they will appreciate your loyalty and you will have a very
happy customer.

On the other hand, if it costs you money to service them that you could save
by terminating their service, you might just want to cut them loose. Can you
absorb the short term loss?



On Wed, Feb 11, 2009 at 11:49 AM, Dakota B wrote:

>
> Excellent feedback -- thank you all for sharing your thoughts!  I want to
> give notice and take the site down if they don't pay hosting, but -- after
> talking with them today, feel they really are in financial trouble


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