When All Else Fails - ICM & BIS Managing Cashflow Series Part Nine
At some point in the life of every business they will face difficulties in getting a client to settle an invoice.
Now you are faced with the very real prospect that this unpaid invoice may become a bad debt and bad debts can cripple an otherwise profitable venture.
Often the difference between an unpaid invoice and a bad debt can be as simple as how you approach recovery. In the penultimate part of the Managing Cashflow series of guides from the ICM & BIS they deal with this very scenario.
The guide includes a breakdown of the most used options for debt recovery along with an excellent selection of “Top Tips”. You can, as always, download the guide below:
Sid Home our MD elaborates on the guidance below:
“When it comes to recovering an unpaid invoice, speed is often critical. If your late paying customer has creditors owed £20K and cash reserves of £10K making sure you act with alacrity can make all the difference.
Don’t delay when it comes time to pass out an account for third party debt collection, whether you use a debt collection company, a solicitor or take court action yourself. Have a strict deadline for recovery and ensure that any company that goes beyond terms is pursued vigorously.
Recent updates to UK Late Payment legislation now allow for the addition of “reasonable costs” for pursuing overdue invoices on any invoice issued after the 16th of March 2013. This means the financial costs of any such third party collection should be recoverable from the debtor on any invoice issued after that date.”
The Managing Cashflow series of guides is produced by the Institute of Credit Management in association with the Department for Business Innovation and Skills. The full series of guides can be found on our blog here.
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