Have you suffered issues with late payments and not sure what to do next?
Take a scroll through the guide below where you’ll find top tips on how to effectively deal with late payments.
- Undertake due diligence when receiving an order from either a new or existing customer. Check their credit rating, there are free online tools, check the companies house number against the purchase order and confirm who is placing the order and who and where you contact to obtain payment.
- Consider pro forma sales for first order, this is normal business practice. New customers have to build up a credit rating with you.
- Agree payment terms at order.
- Provide regular statements and keep in touch with your customers.
- Remember a sale does not count until it's been paid for.
- Don’t be afraid to withhold goods or services in lieu of outstanding payment.
- Keep your discipline; it is your business, your risk and decision, but credit ratings are in place for a reason.
- Understand your customer and any unique payment requirements such as public sector contracts.
- Adapt to your changing business needs. Talk to your customers.
- Remember to build this experience in to your business.
Many businesses are not waiting for new trade agreements to implement their plans in key target markets. Already, 16% of businesses say they have begun trading with the US since the Brexit referendum in June 2016. China, Australia and India have become new markets for 12%, 11% and 10% of businesses respectively in that period. Many others have launched into Japan and Brazil for the first time.
Such growth indicates an increasing recognition of the scale of the opportunity in markets businesses might once have been reluctant to target. More than a quarter of the businesses in the Trade Barometer (28%) single out Asia-Pacific as the region likely to generate the highest levels of growth for their firms over the next three years, while 27% say North America.
Europe will continue to be an important market for UK businesses – 71% of international companies surveyed already trade with Europe and 15% believe the eurozone will generate most growth for their businesses – but growth prospects in other markets are proving especially attractive.