Simplistic credit crunch tips from ACCA

As the credit crunch continues to bite, the Association of Chartered Certified Accountants (ACCA) has released a top ten list for small businesses facing late payment or debt recovery issues.  A very simplistic list with the mandatory seek more advice from your accountant to conclude.

1. Decide whether it is worth a fight.

2. Consider your customer.

3. Assess why the customer has refused to pay.

4. If the customer does not have a good reason for not paying, you may choose to use a debt collection agency or a solicitor specialising in debt collection.

5. If you opt for debt collectors, ensure you make checks before using an agency.

6. For debts over £750, you can issue a statutory demand.

7. Opting for the Small Claims Track is useful and inexpensive in pursuing debts of up to £5,000.

8. Remember that the real winners in debt recovery are often the lawyers and debt collection agency.

9. Review your contracts.

10. For further information on debt recovery, use a chartered certified accountant.

Useful perhaps, but you’d think ACCA might have come up with something a little more incisive and in depth.