Cashflow is the lifeblood of a company however many small businesses often end up in financial difficulty when customers fail to pay invoices on time. It’s an issue Peter Lynn & Partners help with on an almost daily basis and a question we are regularly asked is:

Q: “I have a client who gives us a lot of work but has recently failed to pay my last few invoices.  He promises payment and wants continued supply. I fear he may be in trouble and will leave me unpaid”

A: Do not supply more without discussing and seeing a repayment scheme in action.

• Get a personal letter from the director or partner concerned confirming (and ideally guaranteeing) the payment scheme.
• Make sure you have full details of the client and up to date registered office address.
• Do a credit and/or company search if you can or ask a lawyer to do so.
• Check your own T&C’s cover recovering goods for non- payment.

There are many options open to you depending on the circumstances.

Your first duty is to your own business and the families it supports. Get paid.

For expert advice on debt recovery, or to set up Terms & Conditions of Business, contact the specialists at Peter Lynn & Partners today