What do you do if your big customer goes bust? (TMA-uk.org)
This TMA article discusses the recent administration of Made.com and the effect it will have on their suppliers, highlighting some key steps that they can take to protect themselves and try to recover monies owed to them.
We are having more and more conversations about companies who have one large customer and, in many cases, they are having cash-flow problems because they are struggling to get payment from them.
As the saying goes, companies should try not to have all of their eggs in one basket, but where this is the case, having stringent credit control processes in place is the first step in protecting themselves from any potential financial challenges.
Following the steps noted in the article should go some way in helping companies that are facing financial difficulties due to a customer’s demise, but it is also paramount that they seek professional advice at the earliest opportunity to maximise the rescue options available to them.
If you are a director or major stakeholder and are concerned about your company’s finances, or you are a professional adviser seeking peace of mind for your client, please contact us for an initial discussion in confidence:
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