Debt recovery is a major issue for many small businesses, particularly when margins are tight. Understanding how to deal with late payment of commercial debts and collecting money owed to you is a crucial part of effectively managing your business.
Prevention is always better than cure and following certain processes when dealing with a new customer can help ensure that your invoices are paid promptly. If you do have to chase up Invoices, a First payment reminder letter is a useful tool, as is the ability to charge interest for late payment. Occasionally, a Repayment agreement can provide a solution and there are other alternatives to court action, including mediation. Ultimately you may decide that legal action is necessary in which case you should understand how to issue a claim and possibly even make a statutory demand.