Girlings logo
TOP
Make an
enquiry

Make an enquiry

Please complete the form below and a legal adviser will contact you.
By submitting your details through Make an enquiry your data will only be used to contact you regarding your enquiry.
  • Home
  • /
  • Latest
  • /
  • Top Ten Tips for Effective Debt Recovery
News 3
26
Jun
Top Ten Tips for Effective Debt Recovery
News

It is important now more than ever to ensure your cash flow does not suffer unnecessarily. Most businesses are prioritising their debts which could mean you fall down the list when it comes to payment. So how can you best ensure you remain near to the top?

  1. Send a statement as soon as your invoice is due for payment.
  2. Contact the debtor by telephone a few days later to ascertain why payment has not been made and when payment is likely.
  3. See if there is a genuine reason for non-payment, such as the debt is disputed, and try to resolve the matter by negotiation.
  4. Ask your debtor to confirm in writing when payment will be made then keep a diary note so that you can chase again if payment is not forthcoming when agreed.
  5. Consider informing your debtor that the matter will be referred to lawyers to pursue the debt, if your debtor is not being very communicative; it might be appropriate to copy your lawyers in on emails with your debtor.
  6. Consider agreeing a repayment plan, If your debtor is genuinely experiencing financial difficulties.
  7. Monitor the repayment plan carefully and ensure it is adhered with.
  8. Warn your debtor of the cost of any necessary legal proceedings and than any interest and legal costs incurred will be added to the debt.
  9. Send a letter of claim/letter before action – a solicitor’s letter will often do the trick.
  10. Issue court proceedings as a last resort.

Why choose a debt recovery professional?

Effective credit control can be time intensive and many businesses – large and small – choose to use a debt recovery professional who has experience and knowledge in this field. There are times when it may become necessary to escalate a case to court, and a debt recovery expert will be able to advise you on what is, and what is not a good route to take. They will also handle all of the administration and the telephone calls, only coming to you for decisions, so that if you do have to go to court all the documentation is fully available to support your claim.

A Letter of Claim

We can help with requesting payment from your creditors without being heavy handed. For taking your instructions and sending a Letter of Claim (and Reply Form where appropriate) we charge from £9.50 plus VAT. Please see further details here.

If you are concerned about your cash flow or debts and would like an informal discussion about your options or advice on how to set up a payment plan or negotiate payment terms, please contact our Debt Recovery team and we can arrange a call back.

Before relying on this commentary please read the Reliance on information posted section in our Terms of Website Use in our Legal section. Please note that specialist advice should be taken in relation to any specific queries and the information above is provided for general information purposes only.

upper shape

Our Experts

David Stoneman

Debt Recovery Manager
Debt Recovery

Stay up to date

We would like to keep you informed with updates on legal developments, event invitations and Firm news by email, post, SMS/text and phone.
Subscribe