Debt recovery vs. small claims court – which should I use?

Most people know that when chasing a debt, the options include debt recovery via a specialist debt collections company, or taking the debtor through the small claims court and trying to get a judgment ruled against them to force payment. But you might not immediately know which debt collection method you should use, or which is the best first course of action to get your money back as quickly as possible.… Read More

What is the current statutory interest rate on late payments?

If you have clients who owe you overdue invoices, it’s important to know the current statutory interest rate on late payments, so that you can chase for payment of the full amount you are entitled to by law. There are three sums of money you can add on top of the original amount you invoiced for: • A fixed sum of £40, £70 or £100 depending on the amount owed.… Read More

Building a credit control procedures flowchart

Drawing up a credit control procedures flowchart is a great way to visualise each stage of the process, and understand better where you should place more focus, and how this will benefit your business. Like credit control itself, you should recognise the full range of procedures used – from the first contact with a new client, to regular updates on existing client accounts.… Read More

Terms and Conditions: Non-refundable deposits

As a means of protecting your earnings using terms and conditions, non-refundable deposits can be a smart move if you are in an industry where a last-minute cancellation is likely to leave you out of pocket. By asking customers to pay a deposit upfront, you ensure that you have at least part of their payment before they take delivery of whatever goods and services are involved.… Read More

Where should I include payment terms on an invoice?

As we always say, it’s important to agree any specific terms and conditions upfront – you can’t just put new payment terms on an invoice and assume that they will immediately become legally binding. But assuming you set out your terms and conditions from the outset, then it is a perfectly good idea to include the most important of those payment terms on an invoice when you send it out to the customer.… Read More

Does a terms and conditions contract need to be signed?

A terms and conditions contract puts in place a clear agreement between yourself and your customer on a full range of issues. Well-written terms and conditions should cover more than just the basics, such as payment terms and how payment can be made, but should also take care of common legal concerns like limiting liability and what happens if you cannot fulfil the order due to circumstances beyond your control.… Read More