Great article Francols Having suffered from customers going bust over the decades. I can speak first hand of the damage this does to a small business . Even if it does not cause a business to fail the knock on effect from a supplier closing its doors and calling the administrators in can last for years . As we entered into another era of business after the credit crunch I took a very close look at things and wanted to have more management of risk . I also wanted to simplify my life . When a customer is in difficulty and your business is at risk it creates uncertainty. Market forces ,trends and demand are one thing but I decided that this is something I can have control over . We now only take payment at the point of booking except for businesses that are completely rock solid ie water boards, large medical PLCs and councils ect . This caused us to lose some customers I knew this would happen when I took this decision but it means we are not depending on cash flow that may not even come . We are not a bank and we are not a lending facility . We are still here I cannot say that this would have been the case if we continued exposing ourself to risk The question a small company needs to ask itself Do we want to be here in the future Do we have a book that is not just at risk of shutting us down but also a risk to short term cash flow Is it worth the risk ?