Basic list of late payment tips for small businesses facing credit squeeze.
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.
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