At our most recent Hucknall Business Club meeting, Sam Greer, Commercial Solicitor LLB, LL.M, took to the floor to tackle a topic that makes even seasoned business owners wince: getting paid.

Cash flow is not just admin. It is survival.

Sam opened with a sobering reminder. Many profitable SMEs fail not because they lack sales, but because they run out of cash. Late payment is not a minor irritation. It is a systemic risk. You can win the work, deliver it brilliantly and still come unstuck if the money does not arrive.

One line in particular landed hard: "If you offer credit without security, you are a bank."

Thirty-day terms. Sixty-day terms. Ninety. The longer you give, the more risk you carry. You are extending credit. The question is whether you are doing so on your terms or someone else's.

Before we go further, a clear statement. This article is not legal advice. Everybody's circumstances are different. What was shared at the meeting was an outline of options that may be available depending on your situation. Always seek independent legal advice before acting on any of these points.

Before you do the deal

Sam stressed that your strongest position is before work starts. Look for red flags:

• A brand new company with no payment history.
• Requests for extended terms. 
• Reluctance to sign the terms and conditions.

If someone resists signing T &Cs, ask yourself why. Protective measures discussed included deposits, shorter payment terms, clear invoicing triggers, interest on late payments and, where appropriate, personal guarantees. You may also want to include a suspension right in your terms, but remember, you cannot suspend work without this being written down in the agreement.

And the basics matter. Keep contracts simple. Get them signed. Make sure terms are properly incorporated and agreed upon before work begins. Terms sent after the job has started or printed only on invoices are too late.

When Payment Slips

If an invoice goes overdue, leverage changes. In B2B transactions, statutory interest can apply, currently set at 8% (unless your contract says a higher or lower amount). Sam pointed out the psychological impact of showing a debtor how interest accrues daily. It shifts the tone of the conversation.

Formal demands, adding interest and, where the contract allows, suspending performance are all tools that may be available. Acceleration clauses can also mean that one missed payment triggers all sums becoming due, if drafted properly.

She also warned against informally changing payment terms. Trying to be helpful can unintentionally waive a breach and weaken your position. This is a particular risk if junior colleagues are handling credit control.

Due diligence and common sense

Simple checks can prevent serious headaches. Running credit reports, monitoring Companies House filings and setting clear maximum credit limits can all help you spot risk early. Repeated excuses, ongoing requests for delays, key staff departures or late filed accounts may signal deeper problems and should not be ignored.

At some point, you may need to stop the new supply. That can feel uncomfortable. It may strain relationships. Yet continuing to extend credit in the face of warning signs can multiply losses.

What made Sam's session resonate with so many of us in the room was her grounded, practical approach. No scare tactics. Just clear explanations of how the law interacts with day-to-day commercial reality.

For those who attended, it was a timely nudge to review contracts and credit control processes. For those who could not make it, this was a snapshot of the kind of high-calibre expertise shared at Hucknall Business Club each month.

And for all of us, one uncomfortable but necessary question remains: are you running a business, or quietly acting as a bank?

Contact Sam Greer, Commercial Solicitor

If late payments, contracts or commercial risk are on your radar, Sam Greer, Commercial Solicitor, is available to support businesses with clear, practical legal guidance. If you would like to explore how she could help protect your position, you can get in touch below:

hello@raillawyer.co.uk
0115 667 0245
www.raillawyer.co.uk