Debt Collection
In today’s competitive marketplace, effective credit control and debt collection are vital if your business is to maintain a healthy cashflow position. Sadly, collecting money which has already been earned is often overlooked in the pressure to gain further sales.
We would like to help you prevent problems arising and reduce your level of bad debts. We have already had a positive effect on many local firms’ cashflow – could yours be improved?
Credit Status Checks
Don’t let that lucrative new deal turn into a massive liability. Giving credit in some form is usually unavoidable, but spending a little time researching customers’ ability to pay at the outset can save a lot of effort and expense later. Take out a credit reference before you agree to supply a new customer or offer a higher level of credit than ever before to an existing client. We can advise on how to do this.
Terms of trade – don’t give your goods or services away! Keep one step ahead of potential defaulting customers by making sure that your terms of trade give you the best possible protection and assistance. To ensure they are enforceable, these should be incorporated into your contracts by being included on order forms or acknowledgments.
Security – if you are entering into a major contract, or have any doubts about being paid promptly, you may consider taking security from your customers to help protect you if they default. This can take many forms and includes letters of credit and trade insurance (domestic and export). We can advise you on what is most appropriate and help you prepare the documentation.
Procedures – prevention is better than cure. We can advise your credit control staff on developing and implementing clear and effective policies, and give them tips on how best to chase debts in the initial stages.
Debt Recovery – even the most cautious businesses will suffer occasional bad debts. We can deal efficiently and effectively with debts of all types and sizes. In the first instance, we will write a letter; most debts are paid at this stage, but if it doesn’t work, we will start Court proceedings.
Enforcing Judgement – if a case goes to Court and judgement is obtained in your favour, the debtor is obliged to pay you. If the debt is still not settled there are a number of possible enforcement procedures including:
- Warrant of Execution
- Attachment of Earnings
- Garnishee Order
- Charging Order Over Property
- Bankruptcy
We will explain these to you, and help you to put them into action if required.
Disputes – not everything goes according to plan. Sometimes there may be a genuine dispute between you and your customer, or supplier, and debt collection procedures will not be relevant. We have an experienced team of lawyers who specialise in handling a range of commercial disputes through to negotiation and, if necessary, trial.
How can we help?
Professional debt collection can cost less than you might expect, and it’s surprising how effective a letter from a solicitor can be! A small investment in time and advice now could also make your internal credit control systems considerably more effective.
Whatever your needs we will respond quickly and efficiently, leaving you free to concentrate on developing your business. Simply call and ask for our debt collection department.