Keeping on top of your finances is essential to ensure the ongoing success of your business. Whether it’s a one off payment or an ongoing payments due from a client, it is important to ensure payments arrive on time to keep cash flow running.

Unfortunately not all payments arrive on time. While sometimes it can be an honest mistake, invoices must still be paid, and when payments are beyond overdue, legal action can be taken to recover them.

Invoice clients as normal

Send an invoice as normal to any client who has missed payments and wait for confirmation that the client has received it, email it where possible.

Invoices should include:

• The words ‘invoice’

• Unique invoice number

• Your company name

• Company name of client and their address

• Date of supply

• Date of invoice

• The goods or service

• The amount payable

• Refer to the Payment terms, which should have been made clear prior to order

• Purchase order number

• How to make the payment

• Payment due date

Non- receipt or missing key details from the invoice may be the reasons the client has failed to make the payment. If you need help with the detail of an invoice or pursuing non-payment, our Debt Recovery Solicitors will be happy to advise you.

Chase missed payments

If the payment has not been made by the date agreed with the client, typically 30 days, then begin chasing the client. You can send a payment reminder to them via email, or give them a call to enquire why the payment has not yet been made.

Ensure all correspondence with the client is professional and polite and refrain from getting angry or forceful. Losing your patience with a client is likely to make the situation worse and the process of debt recovery harder.

Offer the client options for making the payment or a way to discuss the outstanding debt with your business.

Pause all work

If the above steps are unsuccessful, your next step should be to pause all work for the client. This is likely to put pressure on the client as they may suffer without the service you are providing for them.

Send a final notice

As a final step before taking debt recovery matters further, you should provide a final notice. This will give your client a deadline to make the payment by before you begin legal action.

This final notice may prompt the debtor to make the payment as they may worry about being taken to court or the involvement of solicitors.

Speak with our Debt Recovery Solicitors

While taking legal action against a client may not seem like the best option for business relationships, remember you have provided a service which requires payment. A non-paying client is not helping your business.

We offer a fixed fee debt recovery service; you can see the costs at each stage of debt recovery and potential court fees, depending on the amount owed.

Our Debt Recovery Solicitors will evaluate your circumstances and any steps you have already taken, to be able to advise you on the likelihood of recovering what is owed to you. We can then advise on the best course of action and present your case in court if necessary.

While you may be concerned about how much the assistance of a solicitor may cost, not getting paid what you are owed may cost you more.

To speak with our team of Debt Recovery Solicitors, give us a ring on 0161 969 3131 or fill in our contact form and we will give you a ring.