Client Tactics Revealed
Creditsafe yesterday unveiled research which revealed that more than 90% of firms have had to send invoices again and again over the past year because of clients’ tactics to delay payment for a contractors work. This has also affected contractors invoicing the client directly through their own limited company.
Contractors awaiting payment for work already completed are most likely to be told that their invoice never arrived, even if it was sent by registered post, the study shows.
Those clients that use these tactics have been branded as unscrupulous and unethical. David Knowles of Creditsafe. “It is bad practice and flouts the moral obligation to pay on time.” Outlandish responses from clients have been said by Knowles to be reminiscent of the ‘dog ate my homework’ schoolboy excuses.
David Knowles offered further advice by suggesting that firms and also contractors should and can take proactive steps to identify those businesses or clients that represent a poor credit risk or are habitual late payers.
Before accepting a new contract, it is important to research your client beforehand to identify whether they are already known within the marketplace as being late payers.
Filed under: Contractor News
