I am finding that small traders are not being careful enough about who their customers are.

If the debtor pays there is no problem. If he does not, few realise that directors are just NOT responsible for the debts of their company. That means that the only asset left available to  an unsatisfied creditor if he sues is the company seal!

Let me spell it out. Mr Brown suggests what work he wants. The price is agreed. He then asks that the invoice be made out to his company. If he does that after the work, Mr Brown himslef  is liable. If he asks before the work is done then the company was introduced into the contract and the company is liable.

A company in financial difficulties just does not pay. What money it has is removed by the directors, fees salary, other debts etc and all that is left in the company is the company seal. Suing the company is not an option.  The director is not liable. He is sheltering behind the li ited liability company. The company may have cost only £100 to set up and the delinquent director is fee to set up his next one.

Remedy: amongst your terms of trade should be a term ( togethe with reservation of title etc) along these lines:

The person signing on behalf of the company by signing accepts personal liability in the event the company fails to pay according to the terms.