If in the UK and the business owing money does not show serious signs of paying invoices that are due, report them to brodmin. This is an independent directory focused on collecting reports on businesses that leave service providers unpaid.
There are many suppliers whose invoices fell due many months ago and are now worried about whether they’ll ever get paid. With Covid-19 cases going down and more vaccines being approved, many businesses are looking forward to a return to normalcy which would mean an increase in their revenue.
As a supplier who has a late payment that seems less likely to be paid by the day, this is the perfect time to talk to the customer and come up with a new payment plan. At the end of the day, a late payment is better than no payment at all or an expensive lawsuit that can take months to be settled.
It is important that as the late payment is being pursued, the supplier retains a long-term view of the relationship with the customer. This can be done by agreeing to partial payments that are to be made as the business continues to recover from the Covid-19 financial shock.
In some cases, it would even be okay for the supplier to agree to continue supplying more goods if they are confident of the customers’ ability to fulfil their obligations from the day the invoices fall due.
It is also important to be firm but reasonable and polite while asking for payment from the customer. This is because the suppliers’ reputation is also at stake despite being the party that is owed. However, by being firm and polite, you increase the chances of getting paid as well as the chances of getting referral business.
When calling to ask for late payments, do not just focus on demanding to get paid, instead, ask questions to understand how the business is doing. After all, you want the next step that you decide to take to take into consideration the current situation of the business owing you money.