Avoid Debt Tips

Bad Business Debt

And Mental Health...

There are many reasons why debt is bad for business. One of which that is rarely considered is the negative impact it has on the company workforce mental health. Here are some of the key findings from a study commissioned by engineering services bodies ECA and BESA, identifing mental health issues in SME staff due to late or unfair payments practices.

If you are struggling with bad debt and not sure where to turn, we have numerous tools on our site to help you with this including our Free Ledger Review & Advice | Send your debtor a collection letter from us | A Guide To Construction Debt 

You can also continue down this page to view our Top Tips to avoid Bad Debt!

Of SME are encountering mental health issues among staff due to payment issues
Of SME owners have had to reduce their salary as a result of late or unfair payments
Of Construction SMEs across the country are paid late (the UK average is 71%)

Top Tips To Avoid Bad Debt

Reduce your stress and anxiety by adopting our simple good housekeeping procedures below which will hopefully help you fight off the bad payers!
Step 1
Agree Your Price

Be clear and concise from the outset, ensure your quote/agreement doesn’t give the customer any wiggle room!

Step 2
Do what you said you would

Simple, do the work well and you cant go wrong

Step 3
Get Approval on any Extra Works

If you have had to deliver any work over and above your quote then make sure its approved before invoicing

Step 4
Sign Off

Make sure your get your work checked and signed off.

Step 5

Get your invoice approved!

Step 6
Payment Due Date

Make sure you instruct the client as to when you are expecting payment to be made

Step 7
Don't be scared to Chase

Chase the client the week before it’s due to ensure there are no problems

Step 8
Pre-Pay Day Check

Give the client a polite email the day before, just checking payment will be made.

Finally... Step 10

Send the client an acknowledgement of payment on receipt

If you've rather we give you a hand, we'd love to!

You can’t always eliminate the bad payers who don’t want to pay, there’s not much you can do about that, but CRS can take the stress away from you with Credit Control or out of terms no win no fee Debt Recovery…

We, CRS, are a specialist construction debt recovery agency, have set up a dedicated “Help Desk” to help provide small contractors and sub-contractors with Free Construction Debt Advice, deal with the underhand tricks of your employers QSs. We will give you one Free Hours worth of advice and at the end of this we will know exactly where you stand. If you would like us to take a free, no obligation look at your debt, simply leave your details below:

    Most Common Excuses For Debtors Not Paying

    Read our PDF to see if any of these excuses sound familiar and what you should do. Simply complete the forma and we will email your article.