Services > Dispute Resolution > Debt Collection

Debt Collection

The old saying that “cash is king” is true for every business, even though cash now means all forms of monetary transactions in a move towards a cashless society. All businesses have policies about payment of invoices but how many follow through on those policies if an invoice remains unpaid?

 

It is important to ensure that the businesses and customers you deal with trade on your terms and that your invoices are paid in accordance with those terms on a timely basis. In our experience, the earlier that recovery action is taken on an outstanding debt, the greater the prospects of recovery. In other words, the longer you leave an outstanding debt, the harder it becomes to collect.

Unpaid debts can have a devastating effect upon the cash flow of your business, and this can lead to uncertainty and potentially prevent you from paying your suppliers. This may impact upon your professional reputation amongst your competitors and can also send out the message to your customers and business partners that there is no rush to pay an invoice.

Unless there is an effective credit control system in place, the impact of inaction can be very serious. It is important to ensure that the businesses and customers you deal with trade on your terms and that your invoices are paid in accordance with those terms on a timely basis. In our experience, the earlier that recovery action is taken on an outstanding debt, the greater the prospects of recovery. In other words, the longer you leave an outstanding debt, the harder it becomes to collect.

Debt collection does not have to be expensive or involved, and we find that an initial letter from us will often lead to payment being received. Alternatively, in some cases, it may be necessary to send a formal demand, known as Statutory Demand. A Statutory Demand will inform the debtor that if payment is not made within a specific time limit, that may result in bankruptcy or winding-up proceedings being instigated. The letter or the Statutory Demand can be issued within 24 hours of receipt of your instructions and, in our experience, both can be extremely effective in recovering your outstanding debt.

If the recovery of debt is more complex and involves other additional issues, we can provide comprehensive advice on the options available to you and your prospects of recovery.

At Vyman Solicitors, we are experts in Commercial Litigation and can assist you in resolving the issues as quickly and as cost effectively as possible.