Clear communication is vital. In times of crisis and change, the language we use becomes very important. We might know what we want to say, but we need to check how it's being received.

Talking to small businesses and freelancers now, many are sharing they are not sure how to communicate with clients over invoices, as cash flow becomes tight for them. They also realise that cash flow might be tight for the client as well. So how do you approach this dilemma? My advice would be clearly, honestly and quickly.

To do this, take the time to write out the issue and what you want to have happen. Think of the genuine reasons you’d like to know that the invoice will be honoured. Be aware of your burn rate i.e. how long you can continue to operate without money. Then reach out and very clearly raise the issue. Stay on message. I would be honest about your reason for asking about payment and allow the other person to answer, or to go away and come back to you.

Not asking will not help anyone. Being clear about existing invoices will help you balance the books, especially around any payment holidays you might be taking advantage of. Either way and whatever the answer, you’ll be clearer about where you stand. Your clients will also need to understand where they are. Each of you will have different circumstances and the impact of the crisis will hit different people in different ways. If its impacted you, let people know.

Beginning the conversation doesn't guarantee payment but it does give you a better understanding of how each client is thinking and trying to to respond. Clients might be stuck trying to understand their own position with their clients and/or government support options for loans or furloughing staff. Equally non-payment to you might be impacting your ability to pay your own suppliers. Ensure that you are aware of your own responsibilities and are communicating with who you need to as well.

These are fluid and changing times and some circumstances have been relaxed around rent, mortgage, VAT etc. As a director or business owner you'll need to work hard to try to keep updated via your accountant or the main government website:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19