It’s counter-intuitive, but sometimes you just need to let a client go. The Inc.com blog offers some thoughts on what you should do when you have a client who isn’t making it, and who can’t pay their bills.
Ultimately, you’re in business to make money, not to do any favors for a client. This is especially true in the business-to-business realm. Even if you think the customer has an amazing business idea and tons of potential, if they can’t pay you today there is the highest probability they won’t be able to pay you tomorrow.
It’s not an easy decision to fire a client, but it beats working for free.