Dealing With Disappearing Debtors And Empty Shells

The levels of debt owed to businesses by their customers and government has been mounting – no thanks to tough trading conditions and Covid-19 – meaning that owners and their legal service providers have had to become creative and proactive in their collection methods. So how does a business deal with disappearing debtors – or worse – empty shell entities?

Can you recall the number of times that a customer (juristic person or sole proprietor) has fallen in arrears with an account? Sometimes a simple phone call or an e-mail does the job and the account, or part thereof, is paid. But, more often than not, these days there is no answer or reply when you try to make contact regarding the account. Added to that, you may decide to pay a visit to their premises only to find it empty and locked. The debtor has closed shop, moved on and left – without settling your account.