Properly drawn credit applications and personal guarantees will greatly enhance any necessary debt recovery action. Debt recovery is dealt with in more detail under a separate heading in this website. The debtor company is in liquidation, but I know that the directors of the company have personal wealth. The corporate veil protects directors and shareholders from the debts incurred by the company. The debt can only be recovered against the directors or shareholders personally if those individuals have provided a personal guarantee in relation to the debt.
Credit is a privilege extended by the creditor at their discretion.
It may become appropriate at any time to withdraw exiting credit and require that a debtor purchase on a C.O.D. basis. Yes, if provision for charging interest on overdue amounts and recovering legal costs is provided for in written terms and conditions of trade and those terms and conditions have been brought to the attention of the debtor at the time the debtor obtained the goods on credit. This is not legal advice. Client s should not act solely on the basis of material contained herein. Professional advice should be sought before applying the information to particular circumstances.