Emmerdale Storyline - Who Are You Entering Into Contracts With?

Don’t be like Declan and his sister in Emmerdale earlier this week - nearly getting caught in the trap of entering into a contract with a company on the brink of collapse, thus potentially losing a considerable amount of money.

Always make sure you know who you are entering into a contract with before you sign on the dotted line and ensure that they are a credit worthy.  Consider whether they are a long standing company, if they have any outstanding county court judgments registered against them, and whether they file their accounts on time.  Has the company had any detrimental information recorded against it e.g. a winding up petition, albeit that it may even have been stayed?  Do they have frequent changes in directorship?  Do any of the directors have previous companies that have gone into liquidation/ceased trading etc? 

If so consider the amount of credit you may be giving, consider obtaining personal guarantees from the directors and continue to monitor the company throughout your business relationship with it on a regular basis.