The ongoing credit crunch has prompted a professional body that represents the UK's freelancers, to issue some practical advice for interim managers faced with unpaid invoices.
The Professional Contractors Group (PCG) is advising freelancers to carry out an early risk assessment by undertaking a credit check on clients they are engaging with and to negotiate terms of payment accordingly.
It also says that freelancers should invoice regularly and keep the time allowed for payment as short as possible in order to keep any losses to a minimum.
They should never ignore a late or missed payment and have a strict credit control procedure and stick to it. If payment is late they should contact the business immediately and endeavour to find out what the problem is.
They should then continue to telephone and chase payment if it doesn't arrive when promised.
The advice has been issued in response to new figures released by the Insolvency Service that shows the number of companies in administration has risen by more than 54% in the first quarter of this year, whilst the number of companies liquidating their business also rose, as did the number of personal insolvencies.
Commenting on the figures, managing director of PCG, John Brazier, said that where instinct or experience tells you that there is a problem, it is important to act quickly and to take steps to minimise any losses.
More advice is available by visiting the PCG's website at www.pcg.org.uk