• If you grant credit to a limited company, make sure the company is solid. A company check costs £5.If any doubt, get a director’s personal guarantee.
  • It is always wise to try to get a couple of trade references where possible.
  • Have good credit control procedures in place and ensure they are acted upon. Monthly statements, red letter reminders and follow-up phone calls are all effective in getting debtors to pay promptly.
  • Always get the debtor to agree a date as to when you can expect payment. Follow-up immediately if the payment is not received when expected.
  • Consider if you can really afford the risk in issuing further credit while there is a current debt outstanding.
  • Consider a repayment schedule where appropriates. Follow-up immediately if the payment is not received when expected.

The main thing to remember is that if a customer does not want to co-operate or if you smell a rat, take precautions to protect your own business. Chasing debt is business – it’s not personal!

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