When you run your own business, you should always be paid in a timely manner by your clients. Late payments can impact your cash flow, and lead to time wasted chasing debts. If you need to carry out a debt recovery process, there are some steps you can take to make sure you get paid fairly.
What Is Debt Recovery Process?
The debt recovery process refers to how you will proceed if a client fails to make a payment within the usual set time frame you have provided them with. The first steps of the debt recovery process are to invoice your clients once you have completed work for them, ensuring that they have agreed to your payment terms. Implicit in this should be the understanding that failing to comply with these terms will be considered a breach on their part.
What About When You Are Not Paid?
If your client does not settle their invoice within the given time frame, you should try to contact them. It is easy for payments to slip through the cracks, and in many cases, a missed payment could be an honest mistake. Call and email politely to remind them of the payment to prevent the situation from escalating unnecessarily.
A Continued Working Relationship
Sometimes, you may find that you are owed money and yet still have an ongoing working relationship with the client. This can be challenging, but you are within your rights to cease work until they have settled outstanding payments. You can explain this to them to encourage them to pay the outstanding amount.
The Final Notice
Before you pursue legal action, it is necessary to provide the final notice. This is the last correspondence you will provide before you seek legal help. The final notice should outline their debt once more, and give them a firm deadline to pay, explaining that after this point you will be pursuing legal action.
How Bowsers Solicitors Can Help
The debt recovery process can be challenging to navigate, even if you have all the necessary information. If you need extra support and assistance in recovering debt, then Bowsers Solicitors are available to provide you with all the guidance you require. Our experienced team can review documentation, and advise you on the best steps to take. Get in touch to find out more.
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