There comes a time in the life of all businesses where they have to look at the possibility of developing a credit policy, and ask themselves if they are going to offer credit to other businesses.
If you consider yourself the kind of business that dreads having to deal with customers or clients who have an outstanding account or an unpaid bill that needs collecting, trust me, you’re not alone.
No one likes to risk destroying customer goodwill by having to demand payment, but in many cases, there is no other option.
Let’s be honest; no one really enjoys invoicing. It’s monotonous and takes up time that you could be spending on other aspects of your business.
But, it’s a necessity. And if you have to do it, you’d better do it correctly, as it'll save you headaches later on down the line.
We are pleased to announce the appointment of Karen Johnson as the new Legal Department Manager here at Lovetts. With a career within the debt recovery industry dating back nearly two decades, Lovetts are excited for her to share her expertise in both commercial debt recovery and operational management.
You get to the end of your credit control procedure and you still have some unpaid accounts, so, what are the options?
As any company knows, late payments can have a devastating effect on operational functions. Whilst businesses must receive payment in full in order to remain profitable, they must also receive the funds in a timely manner to ensure that they can continue to operate.
While no business can benefit from late payments, a delay in incoming revenue can be disastrous for small or medium sized companies. With many SMEs relying on continuous cashflow, unpaid debts can affect the operation of the business as a whole.
As many SMEs don’t have the capacity to employ in-house debt recovery experts, they can find it difficult
Commercial disputes can prove costly for all types of businesses. Whether you operate as a sole trader, an SME or as a multinational corporation, resolving disputes quickly is key to maintaining good cashflow and the ongoing success of the business. Whilst disputes can arise over any type of business transaction, issues relating to goods or services supplied commonly arise when you start chasing your client or customer for outstanding payments.
Recruitment agencies can suffer from the actions of those clients who try to avoid paying their invoices on-time or at all. Here are four factors you may experience.
Collecting payment from clients can become problematic, even for the most financially wise companies. A client could simply refuse to pay, or they might take an unfair advantage of the friendly relationship you have built with them. Either way, it can be difficult to force the payment with a fear of ruining your relationship or losing their custom. However, outsourcing your debt recovery can be a solution.
Usually when a company owes a debt, their creditor can file court proceedings against them in the hope that they will pay – and use a method of enforcement to recover the money if not. However some circumstances, such as a debtor refusing to engage, make this method of debt recovery an unsuitable option. This is where strong action is needed: A Draft Winding Up Petition (WUP).
On March 29, 2017, Prime Minister Theresa May invoked Article 50 (Treaty of Lisbon) to begin the UK's formal process of exiting the European Union. To date, the UK will be the first EU country to secede from the European Union. Under the treaty, any country may leave the European Union, but the exit negotiation process may take up to two years.