Legal giant Eversheds has offered some tips to businesses to help manage, and protect themselves from, risk in the recession.

Richard Matthews and James Hyde, litigation and dispute management specialists at Eversheds, have provided 10 practical tips to help businesses minimise risk and exposure during difficult times.

They include keeping tight control of credit terms, using credit reports to monitor debt, enforcing contract terms, visiting suppliers and keeping firm with slow-payers.

Matthews and Hyde also suggest businesses should “ensure that they have an alternative source of supply on standby. Doing so with time to spare should help you obtain more favourable terms than going to an alternative supplier when your original supplier has just gone insolvent and you have a significant order to meet within a very short timeframe.”

They also suggest making use of retention of title clauses, taking up guarantees and indemnities and also advise businesses not to be afraid to take early legal advice with non-payers.

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