Time is of the essence when it comes to debt recovery and debt collection. Staying on top of your business’ credit control is important and busy workdays can let things slip such as late invoice, a missed payment and even an unpaying customer or client. When all of these add up, it can have a fatal effect on your cash flow and the longevity of your business.
If you’re not being paid on time and are constantly having to issue reminders and chase late payments, damage is undoubtedly being put on you or your business, hindering growth, development and ultimately costing you money in the long run. There are some simple steps you can take to improve your debt recovery processes.
Send a reminder immediately
The person responsible for chasing debt should act promptly when payments are late. Failure to act swiftly can let debts build up, making it more challenging for clients to settle their full balance. Likewise, when you do not take prompt action, clients are more likely to make a habit of late payment. Send a reminder to your client in a form of a physical letter to inform them that you are serious. You could offer the client alternative options for payment whilst keeping it within your control.
Instruct Debt Recovery Solicitors
Instructing debt recovery solicitors who send letters on your behalf, prevents damaging business relationships. They can advise on the best strategy of action and the likelihood of recovering what is owed to you. Debt recovery solicitors can present your case in court where necessary when the debtor refuses to make payment. While you may be concerned about how much the assistance of a solicitor may cost, not getting paid what you are owed could cost you much more.
If you are unable to come to an agreement over the debt, you can get help negotiating a solution using mediation. In mediation, someone from a mediation service helps two sides find a solution to a dispute. It can be quicker, cheaper and less stressful than going to court.
The court will expect you to try to solve the dispute through negotiation or mediation before going to court. If mediation doesn’t work, you can still take a case to court. This is not legal advice; it is intended to provide information of general interest about current legal issues. If you would like any more information relating to Debt Recovery and Litigation then please feel free to contact us.