Probably not a question you ask too often in business if things are going smoothly. However, when invoices are unpaid and phone calls unanswered, it’s asking the right questions or digging a little deeper into whom you are working within those early days that could save you a lot of time, energy and most importantly – cash.
There were 4,187 company insolvencies in Q1 2019; which is a 6.3% increase from Q4, 2018. There are many reasons why businesses fail – increase in competition, loss of a valuable customer, poor employee retention – but the most common reason for failing businesses is poor cash flow; basically not enough money coming in to cover the costs going out. One of the best ways to keep cash flow moving through a business is to make sure that you are getting paid when you expect to get paid.
When it comes to protecting your business from working with a customer who has a poor trading history, it is vital that you have procedures in place that can flag negative activity
A quick and cost-effective way to check if a company is financially stable is to carry out a company audit through