Overdue payment frustrations? Strengthen your credit policies and take back control

Despite repeated demands for change, the Government has done little to address chronic late payments.

It leaves businesses with no choice but to protect themselves by tightening their credit control strategies.

Strengthening your approach to credit control

A proactive credit control system can prevent overdue payments before they become a problem. Here is how to reinforce yours:

• Screen customers in advance – Run credit checks before agreeing to payment terms to avoid unreliable payers.
• Invoice promptly and clearly – Send invoices as soon as possible, ensuring all details are correct to prevent disputes.
• Automate payment reminders – Set up automated notifications to chase payments before they cross into overdue territory.
• Take decisive action – If a client consistently ignores payment deadlines, consider legal steps or terminating the relationship altogether.

Reviewing and refining your payment terms

Many businesses underestimate the power of well-defined payment terms. Make sure yours:

• Clearly state deadlines and late payment penalties.
• Outline acceptable payment methods and any upfront deposit requirements.
• Are reviewed and updated regularly to reflect changes in regulations and business needs.

Setting expectations from the outset minimises misunderstandings and helps maintain smoother transactions.

The consequences of inaction

Ignoring chronic late payments can damage your reputation.

It can cause your business cash flow issues and lead to a struggle to make your own payments to suppliers and partners, instilling in them a doubt of your reliability.

A financial chain reaction like this can put your business at serious risk.

With no external safety net, taking control is the only option.

If late payments are putting pressure on your business, our team can help you build a stronger credit control system. Get in touch today to safeguard your financial stability.