When you have an unpaid invoice, it can be difficult to know how to handle it especially if you are a small or micro business. Profitable business relationships are built on personal relationships so it can feel tricky to pursue what is owed without damaging the relationship.
But business is business and you are doing nothing wrong in expecting prompt payment from your customers and by chasing your money if they fail to pay as agreed. So what is the process for chasing up an unpaid invoice?
Although many small and medium-sized businesses know the importance of background credit checks on new customers, a lack of familiarity with the process of actually carrying out a credit check can lead many to overlook this crucial step in their risk management.
Safe Collections have teamed up with credit check specialists Experian to make it easy and affordable for freelancers and fledgling businesses to begin credit checking new customers.
Read more: Safe Collections and Experian launch '99 for £99' credit report deal
Late payment is a constant problem for businesses in the UK and overseas. Credit terms are ignored and following up can be difficult for some companies, especially if you are a very small or micro business.
This is not how it should be. Every business, irrespective of size, should expect their customers to honour the agreed credit terms and pay in full and on time.
It doesn't seem like rocket science to suggest that if a customer goes bust, you might want to stop supplying them; in fact, if you're doing your credit control properly, you'll probably want to restrict their account long before they publicly declare insolvency.
Under new government plans, due to come into force this October, you might find you are banned from taking such action, once your customer's financial woes are made public knowledge.
Read more: Will Suppliers Be Banned From Cutting Off Insolvent Customers
