Good cash flow is essential when running a business: it ensures you have enough money in the bank each month to pay your outgoings and to turn a profit. Unpaid invoices can interrupt cash flow and cause serious financial difficulty, particularly where multiple accounts are outstanding.
The key to avoiding cash flow problems is a robust credit control procedure which flags overdue invoices as soon as they arise and provides an effective and cost-efficient mechanism for ensuring outstanding debts are collected as quickly as possible. There must also be a mechanism in place for flagging debts approaching six years old as these will require urgent action to prevent them being written off after the time limit for recovering them has expired.
Our debt recovery lawyers have been helping businesses maintain a healthy cashflow for years. Drawing on their knowledge of effective credit control techniques and the options available to deal with disputed and hard-to-recover debts, they can help with:
- the development of robust credit control procedures;
- formal demand letters, requesting payment as soon as an account becomes overdue;
- follow-up letters to deal with account queries;
- compliance with the strict rules governing the recovery of debts from individuals, including sole traders and members of the public;
- calculating interest due on outstanding accounts in accordance with your terms and conditions of trading;
- calculating interest, compensation payments and recovery costs that may be added to outstanding accounts owed to you by other
- businesses under the Late Payment of Commercial Debts (Interest) Act 1998;
- the issuing of statutory demands for undisputed debts where the instigation of bankruptcy or insolvency proceedings is considered
- the best way of securing payment;
- the issuing of court proceedings for undisputed debts where bankruptcy or insolvency proceedings are not appropriate;
- the use of mediation and other forms of alternative dispute resolution to deal with disputed debts;
- the issuing of court proceedings for disputed debts where alternative dispute resolution is not appropriate or has failed; and
- the enforcement of court orders directing debts to be settled.
Advising businesses throughout Gravesend, Kent and beyond
If the need arises we can also offer meetings at your place of business or via skype if you are regularly out of the country.
The cost of our debt recovery service depends on your circumstances and whether the debts passed to us are disputed. We are happy to provide a quotation and to agree flexible payment terms, including monthly billing to help you budget.
Where the Late Payment of Commercial Debts (Interest) Act 1998 applies it may be possible for you to recover some or all of the costs incurred in the debt collection process. This is because, under the Act, it is usually possible to add interest, compensation and reasonable recovery costs to any sums you are owed.
Get in touch with our debt recovery solicitors in Gravesend, Kent
If you need help with debt recovery, please get in touch to see how we can assist. You can call us on 01474 351199 or use our contact form and we will call you.