Posted 25 January 2012 - 08:47 AM
What options are available to self employed and very small business's in dealing with unpaid invoices ?
Say for example, the amount of each invoice is under £100, and you dont really want to go through the small claims for a couple of reasons, cost & reputation as you try to grow my business - Although, this could help with reputation in one way I suppose, by letting customers know you will not be taken for a ride.
Although, I feel the negatives with this course of action, would outweigh the positves.
Any thoughts ?
Posted 25 January 2012 - 09:17 AM
A lot of the time (particularly in the current climate) businesses will push small suppliers to the bottom of their payments pile because they see this as an easy way to ease their cash-flow (small businesses are often worried about chasing money that they are owed out of fear of damaging a relationship). From my experience, in most cases simply sending a written notification that if the invoice is not paid in 7 days it will be referred to a collections agency is enough to scare people into paying. Even if its a bit of a bluff.
Unless the supplier has given you a valid and honest reason about why they have breached your credit terms and both parties have reached an agreement, they more than likely are waiting for you to chase before they will pay. In fact, I've been in companies before where as a rule they did not pay until the supplier asked for the money.
Posted 25 January 2012 - 09:27 AM
Send out a statement on a regular basis.
Follow up with a letter requesting payment.
If neither of the above work then you will need to send a debt collection letter, we have a template available.
If they still do not pay, then you can do the debt collection yourself using Money Claim Online, this keeps your costs down.
What you will find is that most people will pay on a 7 day letter. Some companies will not even pay until they receive a 7 day letter, especially if money is tight.
If you need any more help let me know.
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