Debt recovery

Debt recovery is a major issue for many small businesses, particularly when margins are tight. Understanding how to deal with late payments of commercial debt 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, overdue payment letters are 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.