If you have a customer/client that is not paying their invoices
on time or is refusing to pay for works and/or services provided,
then you may have to start your debt recovery process.
In order to deal with your "debtors", you should
ensure you have an effective process in place, as if you do not act
quickly, it may be more difficult to recover the debt, especially
if the customer is not solvent and becomes bankrupt/goes into
liquidation.
Therefore, your debt recovery process should look something like
this:
- Ensure your terms of payment are clearly stated on your
tax invoices/statements and/or your terms and conditions have been
provided to the customer/client;
- Attempt to contact your client/customer and send
reminder letters (prior to engaging a debt collection agency/law
firm). This should generally be as follows:
