Managing Cash

Set a credit limit with customers.
You can use a credit reference agency for an overall report on your customer’s credit, but be aware that your customers’ ability to pay bills can change from one week to the next.

Set out payment terms clearly to your customersAlthough you do not have to charge it, you could refer commercial customers to your statutory right to late payment interest from them 

Organise your billing schedule and invoice at the earliest opportunity
Consider asking for a percentage payment in advance. If your goods are easily identifiable include a retention of title clause in the contract so that ownership only passes when payment is received in full.

Review your debtors regularly
If customers cannot pay the full amount at once, consider an initial part-payment, and try to agree a payment plan. Getting some money in soon is better than nothing at all and may be less of a hurdle to the customer.

If you are VAT registeredConsider moving to completing your VAT returns online. This gives between 7-10 extra days to pay, and it speeds up refunds. 

If a customer goes into administration
Make sure that you contact the administrator to ensure they are aware of amounts owed to you.