Customers who are unable to pay can have a serious impact on your business. Do you know the signs? Would you be able to identify a potential problem and rectify the situation before it becomes YOUR problem?
Simple, easy to spot signs can often be the first indication that something may be wrong.
- a change in the length of time it takes them to pay your invoices
- a change in payment patterns
- using your services less
- not taking your calls
You know your client, if any of the above seem out of character then you need to be alert.
Other early warning signs include:
- Client losses
- Arrears of payment to suppliers
- Tax payments constantly being paid late
- Bank account facilities breached
- Balance sheet shows negative equity
- Constantly ‘fire fighting’ rather than doing good business
- Threat of legal action by suppliers and or customers
- Staff departures
- ‘Low balling’ or reducing pricing structures to attract new clients
- Constantly concerned about how to pay bills
- Not paying yourself a salary because of lack of funds
Speak to us at IRL. We are able to offer you free advice. We will meet with you to establish the facts and advise on the best course of action to take to ensure your business is protected.
IRL provide a value-added service to you and above all, we are here to help.