Debt Recovery

Recovering a debt quickly is an essential part of ensuring your business remains in good financial health, but when you are busy focusing on attracting new custom and fulfilling current commitments it can be easy to forget this. As a result, procedures put in place to keep cash flowing in can become overlooked and you end up adopting a scattergun approach to debt recovery that is neither effective nor efficient.

JPP Law looks at the ten most common mistakes business owners make when it comes to tackling debtors, and advises on the best course of action.

A landlord faced with a tenant who is not paying their rent has two options: take steps to end the lease or try to recover the money owed. If you decide to recover the rent you might find the commercial rent arrears recovery scheme a good option.

New rules on the procedure businesses must follow when trying to collect debts from individual customers could mean that you have to wait 90 days or more before you can issue court proceedings. To limit the damage this may cause to your cash flow it is important to review your credit control procedures now before the new rules come into force on 1 October 2017.

If your business is owed money by a partnership, and previous efforts to recoup the debt have failed, you may now be considering what to do next. Businesses in this situation have several options but are often attracted by what they perceive to be the quick fix of insolvency and bankruptcy proceedings, but as JPP Law explains, this option is not available to everyone and may not always be appropriate.