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Every small business depends on the prompt payment of invoices – Opinion

In his exclusive column, Tim Pollard takes a look at professional qualifications, cowboy customers, and how prompt payment of invoices is crucial for tradespeople.

As I sit here writing this article, one of my neighbours is having a total bathroom refit carried out in their home.

So over the last week, I have seen a stream of vans turning up belonging to plumbers, tilers, plasterers, roofers (they have had a skylight fitted), and the thing that all the vans had in common was a veritable mural of logos.

Some of these logos confirmed qualifications achieved, while others indicated membership in trade organisations and listings in endorsement organisations.

We know that the vast majority of customers are inexpert buyers, so it is understandable that they seek trusted advice before selecting tradespeople when substantial amounts of money may be involved. This is especially true when the media love to run stories about “cowboy” tradespeople, rather than the many thousands of genuine, trustworthy individuals delivering first-class jobs week in, week out.

The best endorsements are, of course, personal recommendations from friends and relatives.

However, there does not seem to be an endorsement listing for customers because (shock and horror) some customers can be less than trustworthy too, let’s call them “Cowboy Customers”. You know the type, always ready to find fault, even when there is no fault.

Spurious complaints about fictional failings resulting in non-payment of invoices. Every small business depends on the prompt payment of invoices, not only to cover the costs of materials used but also to manage those everyday expenses that we all have to make.

Some of these people may see non-payment of invoices as a valid strategy to drive down prices, but it is very far from that; it is immoral and, in many cases, illegal.

When it occurs, some tradespeople are reluctant to enter legal proceedings because they can be lengthy and costly, despite efforts to simplify proceedings.

Of course, deposits can be built into agreements, as can stage payments for larger jobs, thus minimising the risk. However, very few small businesses can bear the serious effects on cash flow caused by constant delays or partial payments of bills.

Perhaps there’s also a case for a supplier’s endorsement listing to identify those who fulfil their obligations where delays and/or faulty products occur?

Will I need a sticker for the back of my car?

National Heat Pump Week runs 12–16 October, with Heat Pump Association UK. Working in installation, manufacturing or distribution? Register your interest and be first to hear when sessions are confirmed.

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