Small companies go broke easily
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 himself is liable. If he asks before the work is…