>Was it wrong to give him the ultimatum or was in the right to do this? I have to admit to being a better programmer than a business man but I felt that if he was gonna go under and/or "burn" us I'd make the debt be as little as possible on my part. Any advice for the future when dealing with him.


Not at all. Paymetns terms are usually just as much a part of a contract as the specifications for the coding. If your client cannot or does not adhere to that provision, but insists on you completing the work, then I think you are at risk of a potential loss in doing future work for them.

Unfortunately, this seems to ba a pattern for individuals who contract with other individuals. The developer must hone his business skills as well, if he wants to successfully contract for services. You can bet the larger entities do just that.