It's better to face the client and get it over with. We don't need customers that are ruining our business. You can't afford to do that. Some customers actually lie. Others sap time, resources, patience and energy from a business.
Difficult customers disrupt the organization, which hurts morale and has other dire effects.
That plays havoc on your productivity, your service and your quality. If a customer is a problem, the business owner has every right to take action. There are times when you fire clients. I've done it. Thompson and Katz both said the issue of bad customers frequently arises in their consulting businesses.