Many businesses continue to deal with, and respond to, the financial impacts of COVID-19. Some small businesses may be affected and owed money by other businesses.

The instability created by COVID-19 means it is more important than ever to protect your interests when dealing with other businesses.

To minimise the risk of your small business being adversely affected by other businesses, ASIC recommends taking steps before you engage with another business.

This includes:

  • Ask the right questions that will help you to obtain further information.
  • Verify the information by checking ASIC’s registers and those of other government agencies.
  • If you are dealing with a business that is a company, you can monitor it using ASIC’s Company Alert service.
  • Review terms of trade you are prepared to offer and your loan and credit contracts.
  • Be aware of the common scams targeting small businesses with ACCC Scamwatch.

Source: ASIC InFocus