Reduce your business debtor problems

Top tips from Coodes Solicitors’ debt recovery specialist Abi Lutey for getting your business invoices paid on time and recovering what you’re owed:

• Know your Customer. Try to find out about the financial status of your customer, where possible carry out credit checks or if in doubt ask for a deposit.
• Terms. Communicate your terms clearly to your customer at an early stage. Use written quotes and estimates, ensure your Terms of Business are up to date and include your terms with the invoice.
• Chase quickly. Send your first reminder before the terms for payment expire.
• It’s good to talk. Communicate on the phone directly with your customer – this will identify problems early and provide the best chance of getting a solution.
• Interest & Compensation. Advise the customer early that late payment will mean that interest, legal costs and even compensation may be added to the debt.
• Cannot get blood from a stone. Only issue court proceedings against your customer if you know they have the money to pay.
• Get help. It is better to contact a solicitor sooner rather than later, they can send reminders on your behalf and a solicitor’s letter will more often than not result in payment.

Call Abi Lutey for a free discussion 01872 246200 or email abi.lutey@coodes.co.uk.