Startups

Keep up to date via our blog on current news and trends affecting start-ups, with advice, tips and inspiration...

View by category:

Late Payment Risks

31st May 2017

Late payments can also be a big problem for startup businesses. In fact, more than half of Britain’s SMEs are currently waiting for overdue bills to be settled, with an estimated £44.6bn in late payments outstanding.

But what is your contingency plan if your payments are late, reduced or worse still, don’t arrive? When you can change all of these parameters and get an immediate review of your business model and forecast, then you have a really good chance of assessing all of the risks associated with your new business idea in a transparent, logical way. From there, you have your targets planned just in case that scenario presents itself.

Be prepared to confront the problem of late payments as soon as they arise. Leaving things to escalate is not an option for a startup as cash flow is a silent killer and late payments can contribute to this. Here are some quick fire tips to get you started:

  • Know your customers – run credit checks on new customers first.
  • Be clear on your payment terms from the outset and down tools if you have to. Stand strong and try to get a signed agreement on your terms.
  • Avoid cheques and encourage customers to pay using electronic bank transfers or a direct debit.
  • Always chase unpaid bills immediately and keep chasing until they are settled. Do not offer further credit while bills remain unpaid.
  • Monitor your cash flow using advanced technology and get your forecasts accurate from the outset.

Work hard to build strong relationships with clients.

share this article:

close article

NEWS

The Brand Foundation is often mentioned in press articles where comment relating to startups and entrepreneurs is needed; keep up to date with the latest news and features...

View by category:
  • A journey into intrapreneurship and disruption with Jerry Brand

    Think Tank - Book Your Tickets Here

    24th March 2017
  • Britain’s startup community reacts to Theresa May’s plans to trigger Article 50 next week

    Elite Business

    21st March 2017
  • How to improve your company's cash flow - and avoid going bust

    Management Today

    17th March 2017
  • How to Bounce Back from a Business Failure

    Natwest Content Live

    13th March 2017
  • How to be a happy entrepreneur

    Virgin.com

    27th February 2017
  • Jerry Brand launches FREE business modelling tool for entrepreneurs JERRY BRAND LAUNCHES FREE BUSINESS MODELLING TOOL FOR ENTREPRENEURS

    Just Entrepreneurs News Coverage

    21st February 2017
  • Jerry Brand Launches Free Business Tool fro Entrepreneurs

    Just Entrepreneurs

    21st February 2017
  • Deal with the objection: You’re a startup, so can we have a better deal?

    Business Zone News Coverage

    31st January 2017