The reality is that providing you prepare the ground before starting work for your client you minimise the risks of sailing into choppy water when it comes to payment.
Do you ensure that you have a written contract to which your terms and conditions of business have been incorporated?
As part of your onboarding process are you carrying out due diligence? Do you know who you are about to start working with? There are several things that you can do however, one of the best tools in your box should be access to Credit Reports. By looking at your potential client and establishing its status you can assess whether the company has a good trading history, whether there is any negative information – i.e. CCJs. As a member of Dorset Chamber you have free access to such a report – all you need do is email Diane Bantten with details of the company registration number, company name and provided it is a UK company then we aim to have a report in your inbox within 48 hours.
What next … ensure that your Credit Control procedures are strident and followed. There seems to be a trend for non-verbal chasing … emailing reminders for payment are easily ignored. Far more efficient to pick up the telephone and try and establish why payment has not been forthcoming.
If, in spite of your best efforts you still haven’t been able to secure payment then do call Diane for a chat – you will get an honest opinion about your chances of a successful recovery PDQ!