If you’re anything like us, 2020 has started with a bang.
However, the first couple of months of a new year can always have lingering tasks from December to tidy up and cross off the list.
One of the most arduous tasks is to sort out your summer cashflow and chase the unpaid invoices.
January can be a cashflow disaster with many businesses finding their debtors list out of control.
People tighten the purse strings over the holiday period and it often means you don’t get paid.
Historically, the longer the invoice remains unpaid, the less likely it becomes that the invoice will be paid at all.
Key takeaway? Your debts need to be collected ASAP.
Your rights in terms of debt collecting are pretty simple:
- Receiving the money
- Take legal action against the debtor if the invoice is overdue and unpaid
If you or your accounts department have repeatedly sent copy invoices or statements with no response and no payment, or if you’re continually being strung along by the debtor, you need to change your approach and up the ante.
Enter, RBK legal. Debt collection can be awkward and the longer it stretches out, the more stressful it can become.
There are several avenues in which RBK Legal could assist you.
The approach we take depends on the circumstances of each matter and whether the debtor is a company or a person.
Either way, having a lawyer chasing the debt rather than you will show them you mean business.
You’d be surprised how quickly people pay invoices just from being daunted by receiving a formal letter from a lawyer.
The chances are if the debtor owes you money, they owe others too.
Taking the chase to the next level will up your chances of being paid as a priority rather than being one of many businesses continually being strung along.
In a nutshell, the debt collection process looks like this:
- send the company a letter warning them that further legal action will be taken if they do not pay
- if they don’t pay, send them a final notice
- still no luck? Next step is to issue against the debtor in court.
It’s important to note that this doesn’t mean you will have to go to court as stats show that less than 5% of matters actually get there.However, it again ups the ante with the debtor and often gets them to come to the table for negotiation.
Whether you’re partway through the process or haven’t started at all, we can jump on board and take care of it for you. Get in touch with Matt here.