For many small businesses, debt recovery can be a source of great frustration. However, there are simple measures that can be put in place to ensure unpaid recoveries are kept to a minimum. Please take on board the following advice:
Sending out your invoices early and chasing payment should help keep finances healthy. Having a process in place is a necessity. However there are other entities that should be examined before reaching the stage of recovering debts. You should:
- The first step at pre-stage should always be to obtain signed Terms and Conditions from the client.
- Validate customer information. To include:
- Employment details (including occupation) An email address will also need to be obtained.
- Obtain all contact numbers. Including current home, mobile and work telephone numbers – check they are all active and correct.
- Home address
I need to take further action
Deciding if and when to take more serious action can be tough. The good news is that there is a range of options available, and taking your customer to court is a last resort.
To begin with, you can start a legal proceeding yourself. Alternatively, you can contact a legal firm.
Before taking legal advice, please exhaust the following steps:
- The first step of further action should always be a reminder letter.
- This will be followed up by a telephone call before a further letter is sent.
- Should the previous steps fail to result in payment, final demand with proof advising legal action is the next step.
These precautions are merely touching the surface of the entities that need to be considered. Should you require further assistance in relation to debt recovery then please visit www.bowdenjones.co.uk to make an enquiry. Alternatively, contact Jeremy Symes, our Head of Collections and Recoveries, by calling our Cardiff office 02920 484550.