Columnist

Your reputation is worth more than that invoice

We’ve all had cashflow issues; it’s part of growing a business.

But a problem linked to that is increasingly becoming a major issue – and it is deservedly picking up steam in the media.

It has been dubbed phoenixism, and is the business equivalent to 'dine and dash'.

Businesses ask companies to supply a service, don’t pay the bill – fold the company – then start again.

It is a shameful practice costing UK companies billions, restricting growth and putting further strain on smaller businesses.

Unpaid and late invoices are already a big enough problem in this country.

Research by Good Business Pays found that in the second half of 2025, almost £9 billion of supplier invoices were paid late. And that was just by big companies.

But it isn’t just the big boys; often the culprits are SMEs impacting on fellow small businesses. 

Yet while the name may be changed on Companies House, the reputation is forever stained.

And as a company that specialises in building and protecting reputations, trust me when I say people talk.

The business world is small and word spreads like wildfire.

The Guardian recently ran a story about Premier Group Recruitment, which reported the business - which had fallen into administration - had seen its assets bought by PGGBR Ltd, a new firm founded by Andrew Woosnam – Premier’s 99 per cent shareholder.

Nothing illegal about that, but backlash to such stories can be immense. 

Brands are not just logos or flashy websites; they are built on relationships and people.

If you don't treat them correctly, the damage can be even bigger than what you owe.

And the damage can be bigger than the bill.

You can spend thousands on PR campaigns, awards, social media and advertising.

But if a different story is being shared in the flesh, the gloss can quickly come off.

The best reputation management strategy? Don’t create a reputation problem in the first place.

Treat people fairly. Honour agreements. Pay for the value that’s been delivered.

It sounds simple – and it is.

Good businesses leave good impressions.

The business world is way smaller than some realise.

Charlotte Nichols is founder of North East-based PR agency Harvey & Hugo 

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