Why your reputation is worth more than that invoice

We’ve all had cashflow issues. 

That’s part of growing a business. 

But a problem linked to that is increasingly becoming a major problem – 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 £9bn of supplier invoices were paid late – and that just was just by big companies. 

Yet it isn’t just the big boys; often the culprits are SMEs themselves, ‘pumping and dumping’ fellow small businesses.  

When the legal letters come, the business is wound up, and another is born out the ashes – and the supplier loses out. 

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

Because that’s the thing with reputations; They are defined by what others say about you. 

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

The business world is small. Word spreads like wildfire. 

Last month, the Guardian ran a story about Premier Group Recruitment, a recruitment firm that went bust owing almost £3m to creditors and HMRC. 

Days later, the company’s assets were acquired by PGGBR Ltd, a new firm founded by Andrew Woosnam –  Premier’s 99 per cent shareholder. 

Nothing illegal about that – although the firm hit the headlines after the new firm vowed to send staff on an all-expenses paid trip to Las Vegas. 

The backlash to these stories is immense.  

People are fed up, sometimes because often they are the ones being short-changed. 

One North East restaurant recently had a similar story; Six-figure debts but a new business formed – meaning it kept trading, with suppliers (likely local) picking up the tab. 

The backlash was real; On social media, the comments section was awash with people vowing to never eat there again – realising the legal but ethically grim practice that had been allowed to transpire. 

Ultimately, brands are not just logos or flashy websites – they are built on relationships and people. 

If you don’t treat them right, 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 – because it is. 

Good businesses leave good impressions 

The business world is way smaller than some realise.