“A sale is not a sale until the money is in the bank”. It’s a great rule of thumb but it’s surprising how many businesses forget this golden rule and over-extend themselves. For many freelancers the long awaited big contract is one of the main reasons to be in business. However, whether your customer is a small business or a very large one, it is critically important to ensure they can and will pay you.
Creditsafe have produced a comprehensive 16-page guide to help freelancers and small businesses assess their credit risks.
The guide, now in it’s 6th edition, reminds us that Woolworths Group Plc was a massive business, a household name, employing thousands of people, turning over hundreds of millions but when it finally flopped many of it’s creditors were left with nothing. No stock, no payment and scant likelihood of any payment from the liquidators.
As a freelancer working for a company and invoicing when the work is done you are effectively investing in that company, you are investing you time and effort and you need to make sure you are well placed to receive full and prompt payment the return on your investment.
The guide is full of great tips for understanding and checking your credit risk.
Download the CreditSafe guide [PDF 434 kB]
