Customers not paying on time can be fatal for a small business. When sending your invoices early and chasing payment should help keep your business cash flow healthy, sometimes polite reminders aren’t enough and the money you’re owed isn’t coming in quickly enough.

Deciding to take late payment issues further can be a tough decision. However, the good thing is that you have plenty of options to try; taking your customer to court should be the last resort.

To begin with, you would be in a better position if you have terms and conditions agreed by your customer. You will also need the outstanding invoice(s), and any communication about the order or service to your customer as proof. You can’t build much of a case without them.

As soon as you have a past due invoice, these are the steps you will need to take to chase a debt and increase your chances of successful recovery of monies owed.

Send an Invoice

You and your clients should have already agreed on payment terms by the time you have issued an invoice for goods or services provided and wait for payment within the agreed-upon terms.

Follow up

Follow up the invoice. If it has gone past your payment terms, you need to remind chase the invoice, letting the client know that they need to pay for the work that has been completed for them. This can be done via phone calls or e-mails, letting them know that the issue will be escalated if not resolved.

Final correspondence

A final notice is the last correspondence you can send to a customer before legal proceedings. It needs to clearly outline that they have breached the agreed-upon terms and that they have until a new deadline to settle any outstanding debts before you start legal action against them, making a claim for what is owed to you. If your client doesn’t settle any outstanding payments with your business, then you can take the next step.

Debt Recovery

At swift Resolution, we can act on your behalf to recover the unpaid invoices and take matters further legally. If your customer is unable to pay, we can instruct bailiff and trigger insolvency proceedings. I f you would like more information or help with recovering business debt owed to you, get in touch with us at enquiries@swift-resolution.com or call us 0808 145 1886