Know your customer – not every business can credit check their customers but nothing is stopping you from obtaining as much information as possible about them (including whether they are a sole trader, a limited company or a partnership). Keep a signed order form on record. Make sure your customers know your payment terms (draw their attention to the payment terms section in your terms and conditions). Tighten your credit control procedures: as soon as payment is late, send a seven-day demand for payment and follow this up immediately with a phone call which should help clear any disputes or issues with the invoice. After your credit control period has ended, pass the debt over to a business debt recovery agency such as Ko-bolt. Consider trade credit insurance – or flexible invoice insurance – as a way to protect yourself from the risk of bad debt