Reducing the business risk of overdue payments

For businesses that sell on credit, chasing late payments can be a regular monthly headache. To boost cash flow and reduce the risk of overdue payments turning into bad debts, an effective approach to debt collection is necessary. If a payment deadline has been missed prompt action to recover debts is essential. Often a personal phone call is effective – there may be genuine reasons why the debt has not been paid. It is important not to antagonise your customer by getting into heated arguments and protracted correspondence. Our Debt Recovery team are experienced in tactful and effective negotiation. If your debtor does not respond to requests for payment contact us to discuss your case. There are several courses of action that can be pursued. A solicitor’s letter is usually the first step to debt recovery and often produces the desired result. This will inform your debtor of the legal action that may be taken if they still refuse to pay. For debts of less than £750 a statutory demand for payment may be issued. If the customer does not dispute the debt but still refuses to pay then you can apply to the court to wind up their business. This statement of intent to make your customer insolvent has a powerful effect. However, resorting to court proceedings can prove costly and time consuming and there are many avenues to follow before this final step. Contact our legal team who will help you define your case in legal terms and explore other options that are available to you.