are settled without issue. “Whilst it seems obvious, another common pitfall is that invoices raised by you must be clear.You must include a clear outline of the items provided, any payment terms and the details of the parties. Once again, outline in your invoices that late payment interest will apply. “If you have done all of that correctly, the vast majority of clients will settle debts due to you on time. However, if they do not, you must act consistently. This advice is crucial. One of the most effective methods of debt recovery is merely that your clients know that you take it seriously and cannot be used as a free loan facility.” Maximise recovery So what should you do when things go wrong? Regardless of cause, be it a complaint or just a failure to pay, now is the time to get professional advice. James said: “As part of our debt recovery service, the first thing we do is discuss the potential options, costs, likely outcome and timescales involved in trying to recover the funds due to you. Part of this a commercial assessment of your chances of recovery. If we think that there is little merit in proceeding at this point, we will discuss it with you.” One of the most common mistakes made by
companies doing their own debt recovery is to issue claims with no chance of recovery. This wastes costs and valuable time, which could be better spent focusing on driving innovation, development and growth of your business. Additionally, if you know that your client has a legitimate complaint, issuing a claim without advice can result in wasted costs, time and even a court order against you. James said: “We advise you whether you have good recovery prospects and we manage the whole process from there. We undertake all correspondence with the debtor, respond to any complaints, draft any claim, attend any hearing and, while rarely required, instruct enforcement agents, whilst constantly engaging with you to ensure you are informed and in control.” This approach of actively engaging with clients, providing another chance to resolve complaints, maintaining clear boundaries and selectively enforcing applicable debts ensures that your business most effectively converts your sales leads into cash flow. It will help deliver improved profits with minimal effort from you l If you want to talk about your commercial contracts, debt recovery or disputes contact Tayntons on 0333 0145 451 or email info@tayntons.co.uk
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