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What to Do When Customers Don't Pay

Protect yourself.

learn more about Margaret Littman

By Margaret Littman

Chris DeLorenzo
Mitchell Compton

Opinions expressed by Entrepreneur contributors are their own.

Mitchell Compton II's success was starting to freak him out. He cofounded the San Diego-based Coconut Beach, which sells a line of coconut chips and drinks, and debuted the products at a natural-foods trade show in March 2015. Orders came in rapidly; he soon got up to $1 million in sales. But then he started wondering: How reliable are some of these people? "We had to figure out how to mitigate our worry over not getting paid in a timely manner, or at all," Compton says.

Related: How to Check a Customer's Credit Worthiness

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