As a debt recovery solicitor one question I am regularly asked is when should I say enough is enough and pursue the debt I am owed?
The answer is simple. The sooner the better.
Our advice to the Essex based businesses we help is always, if you’ve chased a customer for payment with no success then don’t stand back and wait. Being ‘nice’ won’t ensure payment. Your debt will simply slip to the bottom of the list, behind the others who shout louder.
And, the longer this goes on, the more chance there is of the coffers being dry by the time you finally act.
How to Recover Debt
1) Compile as much information as possible. Ideally, you’ll already follow our 10 Credit Steps in everyday business. Meaning you established who you are dealing with and carried out a credit search before you granted credit. Hopefully you also issued a complete invoice, including your payment terms.
2) Be consistent and firm when it comes to credit control. Some of the businesses we work with systematically send out a reminder email the day before an invoice is due. Others pick up the phone the day after. Whatever works for you. Just keep it consistent. Your customers will get to know that they can’t put your payment off, and respect that you will pull them up on it.
2) Show them you’re serious. Once you’ve chased, instruct a solicitor to issue a debt recovery letter. Believe it or not, we have come across debtors who resent being chased for ‘old debts’ (due months ago) and have the cheek to query why they are being pursued after all this time. Even more reason to act fast.
3) Don’t take no for an answer. Work with a specialist debt recovery solicitor, on a fixed fee, to ensure speedy recovery of the late payment. Don’t forget if you are owed money by a business and you have to chase it you are entitled to compensation for doing so as well as interest under the Late Payment of Commercial Debts(Interest) Act 1998 (as amended) helping to offset the costs you’ll incur.
Word of Warning!
A new Pre-action Protocol came into force October 2017. This means that if you are a business and are owed money by an individual, you must now make certain that you comply with the Pre-action Protocol before issuing court proceedings. If you do not then you will likely face cost consequences.
Follow these simple steps in our Pre-action Protocol Guide
If you follow best practice credit control in your business then the number of bad debt situations you find yourself in will naturally decrease. And, as an added bonus you’ll also find that you have all of the information required pre-collated, making sure any bad debt judgment is enforceable and your chances of ever getting the money owed to you will be increased.
About TM Law – Specialist Debt Recovery Solicitors
Based in Hockley, Essex, TM Law is a small and dedicated solicitors. With many years’ experience, helping business owners and local individuals with matters of personal injury, compromise agreements, employment disputes, debt collection, commercial disputes and much more.
As a specialist debt recovery solicitors, TM Laws’ knowledge of the debt recovery system available to recover money is second to none, and their approach is proven to achieve maximum recovery for minimum outlay on behalf of local business.
For a personal service, practical advice and quick recovery of your money contact us today. We offer a fair, fixed fee service and we’re always happy to help.