Getting to know your customer and continuing to show interest in them can help you feel more comfortable doing business with them. 

Here are 3 top tips to help you know your customer

Tip 1

Who are you speaking with?  Is the person a director and someone who can make decisions on behalf of the business?  This is a very important question to ask because we have seen invoices go unpaid as a result of dealing with someone who was not the decision maker.  In such circumstances, the expense may not have been authorised and the business may not even have had the additional funds to pay.  It is therefore very important to find out the answer to this question as early as possible and at the very least, before you begin work. 

Also make sure that only the decision maker signs your contract.

Tip 2

Get a credit report for your customer and check their financial history closely.  The report will provide a credit score and it will also let you know whether the business already has County Court Judgments (“CCJ”). 

Tip 3

Do not cut corners when it comes to having your legal documents prepared.  Google research and ChatGPT may lead to you and your business being exposed if a customer does decide not to pay.  Why is this. Often, crucial information is missed and overlooked, and without specific expertise, an untrained eye will not know what should and should not be included.

Engaging a regulated and fully qualified experienced solicitor to draft your legal documents for you will be an invaluable expense and could save your business from having customers who believe they have leverage to dispute what was agreed.

Bonus tip!

Please do not forget to adjust your agreement with your customer if you start to offer additional services that are not covered by the original terms agreed.