For the small business person who has only a few bad debts a year, legal action to attempt to recover that money can be a frustrating business.
Debt collection is a numbers game.
Perhaps the hardest thing for creditors to realise is that you don't win every time. Many people when they start a business concentrate on making the sale, or arranging production, and simply expect the customer to pay promptly. Through inexperience or lack of confidence, many small business people are reluctant to ask customers for money. The first point is that you should not have a sign that says 'No refunds'. The reason is that sometimes a customer can legally get a refund even though you have a sign that says the opposite.