Struggling to get paid? – Here’s how to spot bad debts before they hurt your business

Times are tough for a lot of businesses right now, and one of the biggest challenges people are talking about is getting customers to pay on time. When cashflow slows down, everything becomes harder — paying suppliers, covering wages, keeping the lights on.

If you’re a small business owner, freelancer, or self‑employed, here are some simple, practical tips to help you manage your debtors and avoid bad debts during the current financial crisis.

1. Keep a close eye on who owes you money

Don’t wait until an invoice is months overdue. Check your accounts regularly so you can spot problems early.

2. Look out for these warning signs

These behaviours often mean trouble is coming:

Customers who suddenly stop replying
People who keep asking for “just a bit more time”
Clients who used to pay fast but now delay every invoice
Orders getting smaller or stopping completely

Trust your instincts — if something feels off, it probably is.

3. Don’t be afraid to follow up

Many business owners feel awkward chasing payments, but you shouldn’t. A friendly reminder can make all the difference.
Try:

A polite message
A quick phone call
A reminder email before the due date

Consistency shows you’re serious.

4. Offer payment plans when it make sense

Some customers genuinely want to pay but are struggling. A simple payment plan can help you recover the money without damaging the relationship.

5. Know when to draw the line

If someone keeps ignoring you or breaking promises, it may be time to stop supplying them or escalate the issue. Protecting your business comes first.

6. Stay organised and keep records

Save every message, invoice, reminder, and phone note. If things get messy later, you’ll be glad you did.

Final message

You work hard for your money — you deserve to be paid. By staying alert, organised, and proactive, you can protect your business from bad debts and keep your cashflow healthy, even in a tough economy.

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