Bad debts are on the rise. Here’s how to protect your business.

Over the past few months we’ve seen more bad debts coming through clients’ accounts. It’s a growing issue across many sectors, and even long-standing customers are taking longer to pay or falling behind completely.

Late payments hurt cashflow, slow down growth and create avoidable stress. While you can’t control every customer situation, you can put steps in place to reduce the risk.

Here are some practical actions that make a real difference.

1. Tighten your processes

Clear, simple processes help you stay ahead of problems.
This can include:

• Sending invoices promptly
• Agreeing payment terms up front
• Following a consistent reminder schedule
• Keeping communication open if someone starts to slip behind

The goal is to spot issues early rather than weeks (or months) later.

2. Don’t let overdue balances drift

A polite nudge at seven days overdue is far easier than chasing a large balance at 60 days. Regular checks help you keep things moving before the gap becomes too big to bridge.

3. Aim for something rather than all or nothing

If a customer genuinely can’t pay in full, explore alternatives. Part-payments, staged payment plans or a reduced settlement can help you recover at least some of the amount owed. It’s better to get part of the debt in now than none of it later.

4. Review your credit limits

Your trading terms may have been set years ago. With the current economic pressures, it can help to review limits, ask for deposits or shorten payment terms for higher-risk customers.

5. Get support when things feel stuck

If a debt is dragging on, you don’t need to handle it alone. Whether you need help understanding the accounting treatment, cashflow planning or next steps, our team can guide you.

If you’re worried about rising bad debts or want help improving your processes, get in touch with the Wilds team. A few small changes can protect your cashflow and give you more certainty in the months ahead.