- Formalising an agreement;
- establishing a credit management process; sending a formal demand by letter; issuing court papers;
- preparing for trial; attending a court hearing and,
- ultimately enforcing the judgment.
Heald can help and advise on all stages. Heald invites its clients to adopt the following mindset: you have done the work, you deserve to be paid. Those who delay payment directly threaten your cash flow and therefore your business. A robust position is advised.
Most businesses will recognize the following scenario; you supply the materials or services at the client’s request. You invoice accordingly and diligently follow up by telephone when the payment becomes late. You expertly field various excuses. The promises to pay somehow transform into excuses not to pay as the debtor (out of the blue) complains about your work/materials or denies that x, y or z was ever even agreed. It is difficult and possibly not even cost effective to pursue the debt. Momentum, and then the will, fades. You seem stuck on the back foot and litigation sounds uncertain, complicated and unappealing. You write the debt off preferring to concentrate on your day job.
Preventing the above scenario (as far as it is possible) requires the installation of a credit management process. The business with a good credit management process is rewarded with a debtor that will be persuaded to pay, early. If the debtor is particularly stubborn, then litigation is necessary. A methodical system has considered this eventuality in advance. Providing you have lay the correct foundation to the collection of a debt then one can minimize the risk of litigation and maximize the chance of debt recovery.
Heald can help with the letter before action (a formal demand that predicates the formal litigation). Often this can be enough but if not we will prepare the court papers. Our level of involvement will be dependent on individual needs and the complexity of the dispute. Heald have helped large organisations dealing with many non payers at any one time increase the amount of debt recovered and improve their efficiency. We have also helped many smaller companies successfully chase one or two invoices. Heald’s services are flexible and can be configured to your needs.
For a free, no-obligation discussion about any of the issues discussed in this article, please contact Tom Silverwood-Cope on 01908 662277.