by Stuart Hoysted, senior associate and debt recovery technical director, Clarke Willmott
The economic turbulence of recent weeks suggests that now is the time for SMEs and sole traders to review their debt collection activities.
With interest rates rising and energy bills going through the roof, there has been a large increase in the number of corporate insolvencies. There is a very real prospect of recession and all businesses – particularly SMEs and sole traders – should be looking at their debtor situation.
It’s wise to act now before today’s collectable debt becomes tomorrow’s bad debt.
Why SMEs?
The current financial climate could hit SME and sole traders particularly hard. Increased costs and the typical customer base of these businesses mean they tend to be more exposed to the current turmoil.
Also, far too often the committed small business owner is too busy looking at servicing current contracts or preparing for the next project. There is a general mindset that the collection of older bills will wait until there is a spare moment when they can chase.
Very often that spare moment never arises, and with the current financial climate, all business owners need to put time aside to consider outstanding customer payments now.
Over the past few years there has been an explosion of resources (QuickBooks, FreshBooks, Zoho etc.) available to the smaller business owner, to assist them with the billing processes at a cost. If you use one of these software packages, you will know what a godsend they are in issuing invoices and sending overdue reminders to customers.
But what if you do not use one of these packages, or if you have reached the end of the software’s chasing process and payment is still outstanding?
A telephone call to the customer is a good place to start. This can help you to understand why your invoice(s) have not been paid and perhaps work out a solution for receiving payment.
It is impossible to list all possible reasons for non-payment, or all the tactics you should employ, but some common examples include:
- Invoice (and reminders) have not been received
This could be as simple as having your customer’s email address wrong, or your customer having a filter which has placed the emails straight into their spam folder. You should be able to re-send the invoice to your customer while they are on the phone so they can confirm receipt immediately.
- A dispute over the goods or services supplied
It is surprising how many disputes are not raised until you contact the customer.
Even if the dispute is totally fabricated, knowing that the customer considers they have a dispute allows you to consider your options. This might mean offering a resolution to the customer, even if it is offered through gritted teeth, just to obtain payment. Once it is received you are then free to resolve not to work with them again.
If you are not able to reach a resolution, showing you have attempted to be reasonable may help if you if you subsequently decide to issue a County Court Claim.
- We are experiencing cash flow problems/I am waiting on payment from my customer
It is not your responsibility if your customer has failed in their own collection processes, but somehow your customer believes that you should suffer the consequences equally.
You will need to remind your customer of their responsibilities to make payment and ask them for more information as to when they expect to be paid. Knowing this can allow you to schedule a follow-up call to be first in line once payment is received.
As cashflow is important, it might also be worthwhile discussing with your customer a staged repayment plan, so that some funds start to come in.
- We are winding up/entering bankruptcy
No-one wants to hear that their customer is entering insolvency, but with insolvencies on the rise it will become a more common response from customers.
If you supply goods, and have one as part of your contractual terms, you need to act on any retention of title clause.
In all other cases you will need to lodge the debt in the insolvency estate. Anyone who has had a customer go through insolvency will know that you may have to wait years before a distribution is made – if at all. Any payment received is only likely to represent a few pence in the pound of the actual debt.
If after calling your customer payment still does not materialise, then it is time to consider pursuing a claim through the Civil Court. If the amount concerned is under £10,000 then this can be processed through the HM Courts & Tribunals Service Money Claim Online service (MCOL), which is a relatively simple and intuitive method of bringing a County Court claim.
Alternatively, you can engage solicitors to pursue the claim on your behalf.
Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, Manchester, London, Southampton and Taunton.
For more information please visit Clarke Willmott – Specialist Debt Recovery Solicitors – Clarke Willmott
43 Comments
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
Your article helped me a lot, is there any more related content? Thanks!
Very good site you have here but I was curious about if you knew of any message boards that cover the same topics talked about in this article? I’d really love to be a part of online community where I can get advice from other experienced individuals that share the same interest. If you have any recommendations, please let me know. Cheers!
Adorei este site. Pra saber mais detalhes acesse nosso site e descubra mais. Todas as informações contidas são informações relevantes e diferentes. Tudo que você precisa saber está ta lá.
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.
I have read a few good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to make such a magnificent informative website.
I’m not sure where you are getting your info, but great topic. I needs to spend some time learning much more or understanding more. Thanks for magnificent info I was looking for this information for my mission.
I’m Luke Sutton, a web design and creative media specialist based in Gloucester, and I work with businesses and individuals across the UK. I don’t just provide a service; I become a trusted creative partner, offering photography, video, and web design tailored to deliver results.
What i do not understood is in reality how you are not actually much more smartly-liked than you might be now. You’re very intelligent. You recognize thus considerably with regards to this matter, produced me for my part imagine it from numerous numerous angles. Its like women and men aren’t involved except it is one thing to do with Lady gaga! Your individual stuffs nice. At all times maintain it up!
Those are yours alright! . We at least need to get these people stealing images to start blogging! They probably just did a image search and grabbed them. They look good though!
Thank you for every other great article. Where else may just anybody get that type of info in such an ideal manner of writing? I’ve a presentation subsequent week, and I am on the search for such information.
Have you ever considered about including a little bit more than just your articles? I mean, what you say is fundamental and everything. Nevertheless just imagine if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with pics and videos, this website could undeniably be one of the most beneficial in its field. Good blog!
I conceive other website owners should take this website as an model, very clean and excellent user genial design and style.
The crux of your writing while appearing agreeable at first, did not settle well with me after some time. Someplace throughout the paragraphs you actually managed to make me a believer but only for a short while. I however have a problem with your leaps in logic and you might do nicely to fill in all those gaps. In the event that you can accomplish that, I would definitely end up being amazed.
I like this website very much, Its a rattling nice situation to read and obtain information. “Nunc scio quit sit amor.” by Virgil.
You have noted very interesting details! ps nice site.
I have been absent for a while, but now I remember why I used to love this website. Thanks, I will try and check back more often. How frequently you update your web site?
I conceive you have mentioned some very interesting points, thankyou for the post.
Wow! Thank you! I continually wanted to write on my site something like that. Can I implement a portion of your post to my website?
Hello! Would you mind if I share your blog with my facebook group? There’s a lot of folks that I think would really enjoy your content. Please let me know. Many thanks
I’ve been surfing on-line greater than 3 hours nowadays, yet I never discovered any attention-grabbing article like yours. It¦s beautiful value enough for me. Personally, if all website owners and bloggers made excellent content material as you probably did, the web might be a lot more useful than ever before.
I haven’t checked in here for some time as I thought it was getting boring, but the last few posts are good quality so I guess I’ll add you back to my everyday bloglist. You deserve it my friend 🙂
Right now it sounds like Drupal is the top blogging platform out there right now. (from what I’ve read) Is that what you’re using on your blog?
I enjoy you because of your entire effort on this website. Ellie delights in doing research and it’s really easy to understand why. Most of us hear all concerning the dynamic manner you create functional steps via the blog and as well inspire participation from some others on that area of interest plus our simple princess has always been understanding a lot. Take advantage of the rest of the new year. You are conducting a terrific job.
Very fantastic information can be found on web site. “I don’t know what will be used in the next world war, but the 4th will be fought with stones.” by Albert Einstein.
gdzie mozna kupic prawo jazdy z wpisem do rejestru, kupić prawo jazdy, legalne prawo jazdy do kupienia, kupię prawo jazdy, jak załatwić prawo jazdy, bez egzaminu, jak kupić prawo jazdy, czy można kupić prawo jazdy, legalne prawo jazdy do kupienia 2025, pomogę zdać egzamin na prawo jazdy, prawo jazdy bez egzaminu, gdzie kupić prawo jazdy bez egzaminu, gdzie kupić prawo jazdy na lewo, jak kupić prawo jazdy w niemczech, gdzie kupic prawo jazdy legalnie, kupić prawo jazdy b, pomogę zdać egzamin na prawo jazdy, gdzie można kupić prawo jazdy z wpisem do rejestru forum, prawo jazdy płatne przy odbiorze, prawo jazdy czechy kupno, w jakim kraju można kupić prawo jazdy, pomogę załatwić prawo jazdy w uk, sprzedam prawo jazdy z wpisem bez zaliczek, jak kupić prawo jazdy w uk, ile kosztuje prawo jazdy na lewo?, 987uh
Howdy! Do you know if they make any plugins to safeguard against hackers? I’m kinda paranoid about losing everything I’ve worked hard on. Any tips?
Neat blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog stand out. Please let me know where you got your theme. Thanks a lot
he blog was how do i say it… relevant, finally something that helped me. Thanks
sportbootführerschein binnen und see, sportbootführerschein binnen prüfungsfragen, sportbootführerschein binnen kosten, sportbootführerschein binnen online, sporthochseeschifferschein kaufen, sportbootführerschein binnen berlin, sportbootführerschein binnen segel, sportbootführerschein kaufen, sportseeschifferschein kaufen erfahrungen, sportküstenschifferschein kaufen schwarz, sportbootführerschein see kaufen, sportbootführerschein binnen kaufen, sportbootführerschein see kaufen ohne prüfung, bootsführerschein kaufen, bootsführerschein kaufen polen, bootsführerschein kaufen erfahrungen, bootsführerschein online kaufen, bootsführerschein tschechien kaufen, SSS kaufen, SKS kaufen, SHS kaufen, führerschein kaufen,sportbootführerschein see, österreichischen führerschein kaufen legal, kaufen swiss registrierte führerschein, registrierten führerschein kaufen berlin, echten führerschein kaufen Köln, legal führerschein kaufen, echten deutschen führerschein kaufen, deutschen registrierten führerschein kaufen, osterreichischen-fuhrerschein-kaufen zürich, deutschen registrierten führerschein kaufen…98uyhb
Se você se deparar com esta mensagem buscando comprar uma carteira de motorista registrada sem os exames então estamos aqui para ajudá-lo, basta clicar no link abaixo para falar com um agente. o agente irá orientá-lo sobre como obter a carteira de motorista
https://imt-cartadeconducao.com/
Als u dit bericht tegenkomt waarin u probeert een geregistreerd rijbewijs te kopen zonder de examens, dan staan wij voor u klaar. Klik eenvoudig op de onderstaande link om met een agent te praten. de agent zal u begeleiden bij het verkrijgen van het rijbewijs b
https://mijnrijbewijscbr.com/
Als u dit bericht tegenkomt waarin u probeert een geregistreerd rijbewijs te kopen zonder de examens, dan staan wij voor u klaar. Klik eenvoudig op de onderstaande link om met een agent te praten. de agent zal u begeleiden bij het verkrijgen van het rijbewijs
https://echtrijbewijskopen.com/
Kup prawdziwe, zarejestrowane prawo jazdy na naszej stronie internetowej bez zdawania testów lub egzaminu praktycznego. Potrzebujemy tylko Twoich danych, które zostaną wprowadzone do systemu w ciągu najbliższych ośmiu dni. Prawo jazdy musi przejść taką samą procedurę rejestracji, jak te wydawane w szkołach jazdy,
https://polskieprawojazdy.com/
Als u dit bericht tegenkomt waarin u probeert een geregistreerd rijbewijs te kopen zonder de examens, dan staan wij voor u klaar. Klik eenvoudig op de onderstaande link om met een agent te praten. de agent zal u begeleiden bij het verkrijgen van het rijbewijs
https://belgischrijbewijs.com/
Als u dit bericht tegenkomt waarin u probeert een geregistreerd rijbewijs te kopen zonder de examens, dan staan wij voor u klaar. Klik eenvoudig op de onderstaande link om met een agent te praten. de agent zal u begeleiden bij het verkrijgen van het rijbewijs
https://kopakorkort-se.com/
Se ti imbatti in questo messaggio che cerca di acquistare una patente di guida registrata senza gli esami, allora siamo qui per te, fai semplicemente clic sul collegamento in basso per parlare con un agente. l’agente ti guiderà su come ottenere la patente di guida
https://compropatente.com/
Se você se deparar com esta mensagem buscando comprar uma carteira de motorista registrada sem os exames então estamos aqui para ajudá-lo, basta clicar no link abaixo para falar com um agente. o agente irá orientá-lo sobre como obter a carteira de motorista
https://cartadeconducaoimt.com/
zarejestrowane prawo jazdy na naszej stronie internetowej bez zdawania testów lub egzaminu praktycznego. Potrzebujemy tylko Twoich danych, które zostaną wprowadzone do systemu w ciągu najbliższych ośmiu dni. Prawo jazdy musi przejść taką samą procedurę rejestracji, jak te wydawane w szkołach jazdy,
https://mojeprawojazdycek.com/
Kup prawdziwe, zarejestrowane prawo jazdy na naszej stronie internetowej bez zdawania testów lub egzaminu praktycznego. Potrzebujemy tylko Twoich danych, które zostaną wprowadzone do systemu w ciągu najbliższych ośmiu dni. Prawo jazdy musi przejść taką samą procedurę rejestracji, jak te wydawane w szkołach jazdy,
https://europrawojazdy.com/
Achetez un permis de conduire réel et enregistré sur notre site Web sans passer d’examens ni passer le test pratique. tout ce dont nous avons besoin, ce sont vos données et elles seront enregistrées dans le système dans les huit prochains jours. Le permis de conduire doit subir la même procédure d’enregistrement que ceux délivrés dans les auto-écoles,
https://acheterpermis-conduire.com/
What does a Farmasi Europa Beauty Influencer account mean? Earn money at your own pace and personally with Farmasi Europa. Five major European countries have joined Farmasi Europa: Spain, Great Britain, France, Italy, Portugal. A bunch of countries that have accumulated tens of thousands of Farmasi Europa beauty influencers.
Hello my family member! I wish to say that this post is amazing, nice written and include approximately all significant infos. I?¦d like to see more posts like this .