[Flash68]

Man this really hits home for me and my business over the past couple years (construction staffing/recruiting).

Here's what I've landed on. If you are diversified enough in your client base and revenue stream and this customer represents a small total outstanding aging for you at any given time (including his peak season), then maybe you tolerate his slow pay. And it sounds like you have your money cost factored in and the margins are what's keeping him around. If you can "afford" to drop him and he falls into that 80/20 rule, then consider that.

Not knowing your annual revenue/profit numbers, if he is a small enough portion of your business, then dump him. Not worth the hassle.

If he is a large portion of your business (doesn't sound like it) then dump him. Not worth the risk and cash flow shock issues it can present.

If he's somewhere in between, that's the tough call for you to make. I have mechanics lien rights in my state of business so I have some added protection many vendors/suppliers do not. Not sure what protection you have as far as liens, etc.