Recovering unpaid invoices and overdue payments is a common challenge for businesses of all sizes, especially since the COVID 19 pandemic.
The economic uncertainties that followed, has made delinquent payments somewhat excusable.
However, if a large sum of money is owed and it is having an impact on your cash flow, you may be in a position where you need to act.
Before considering options of recovery there are several ways to prevent such situations and minimise losses.
Prevention Is Key:
- Strategy: Having a sound credit policy and ensuring all checks adhere, will significantly help mitigate any potential future losses.
- Credit Checks: Conduct thorough credit checks on new and existing clients before extending credit terms. This can help you identify potential risks and make well-informed decisions.
- Payment Terms: Ensure that payment terms are well documented in your agreements and invoices. Some businesses offer an early repayment incentive, review whether this is an option you can explore?
Communication:
Communication is key when it comes to debt recovery. Friendly, professional and effective communication can make a difference.
- Reminders: Sometimes, an overdue payment is a simple oversight or there is a genuine reason for why the payment has been delayed. Issue friendly reminders through all available means to discuss the delay, and a quicker resolution may be found.
- Written communication: If calls are ineffective or you can’t reach your client, send a formal written reminder outlining the amount due, the due date, and a reasonable timescale for this payment to be made (7 days is reasonable). Simple text messages are also a good way for people to re-engage with you.
Negotiation:
- Flexibility: Be flexible, when necessary, especially if your client has found themselves in financial difficultly. Consider offering a payment plan or negotiating a settlement amount. This approach can often be beneficial to both parties.
When prevention (or any of the above) fails:
If none of the above has helped, you may be considering options to recover your debt. Hiring debt recovery professionals, like BABR, could be invaluable.
We can assist with the following:
Pre-Legal action, including:
- Letter Before Action (LBA)
- Pre-Action Protocol
- Statutory Demand
Legal steps, including:
- Winding Up Petition
- Bankruptcy Petitions
- County Court Judgements (CCJ)
- Enforcement on CCJ’s or Secured Debts
Click here for a more in-depth overview of the legal steps you can consider when recovering a debt.
Take back control of your Invoice Revenue.
Effective debt recovery strategies are essential for maintaining stability and protecting your business. While prevention is ideal, we understand that the inevitable can’t always be avoided. Knowing your recovery options is crucial for any business.
Why is BABR different?
We understand that every case is unique and it’s essential to approach debt recovery with a willingness to meet your needs, preferred outcomes, and a fair resolution whenever possible.
Our Insolvency Practitioners are also on hand to assist with any insolvent debtor matters if you find that your debtor’s financial difficulties are having an inadvertent effect on your revenue.
Effective debt recovery is a combination of prevention, communication, negotiation, and when necessary legal action. With the right strategies in place, your business can protect its assets and maintain financial stability.
Contact us today to find out more about how we can support you with recovering unpaid invoices and overdue payments.
