Credit control has never been more important. Here are a few tips to minimise your risk of a bad debt:

• Outline your terms of payment in writing with your customer before trading with them, and again on every invoice you issue

• Consider doing credit checks and asking for trade references

• Consider checking the company’s compliance with Companies House

• Ensure you raise invoices promptly

• Ensure that you chase invoices as soon as they are overdue and regularly after that – issue statements or pick up the phone

• Consider offering an early payment discount

• Consider stopping all work for the customer until payment is made in full

• Consider accepting instalments from your customer, getting paid gradually is better than not getting paid at all

• Use the Small Claims Court if all else fails, but sometimes, walking away and learning your lesson is more important

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