Help protect your business from the impact of bad debt
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Over the last few days we have learnt that Swansea-based contractor Dawnus has confirmed that it has gone into administration and the parent company for Interserve, the troubled government contractor is also appointing Administrators.
We urge our members and the wider construction industry to protect their businesses by actively monitoring trading experiences and acting upon early warning signs. Don't wait for the information to come to you, use an industry specific service that can spot changes in payment patterns resulting in regular, more in-depth and up to date checks being carried out to pick up information quickly.
Do not ignore your gut feelings, noise on the ground or unusual trading patterns with the business. For example why is the business asking for much more than usual and why are they not answering your call or following up on an email when they normally would? Has there been a sudden change in the way payment is received? Act on it early and protect your business from the impact of bad debt.
Look at your options for collection, take advice from your collections service provider on the best course of action for you and your customer. Consider your options, a one-step approach is not always the most effective. Above all, ensure your credit control team have the tools and support to be able to be pro-active.