Safe Trading Steps
Prior to veering down the legal route for debt collection, it is important to know how to trade safely. Here are some tips to consider while trading:
- Know your customer: Is the name on the invoice the correct name? Are you aware of their legal history or whether they had issues in the past?
- Use a business form for new clients that outlines all essential details such as
- Company name
- Company number
- VAT number
- Address/registered office
- Primary contact name, email address, phone number
- Nature of business
- Where possible, carry out company searches to confirm the correct business entity. Company searches will confirm the status of the company and will highlight any judgments registered against the company.
- The invoice should include the name and address of the customer.
- If business relationships require the support of a legal professional, choose the appropriate specialised solicitor firm (e.g., business contract drafting initially, debt recovery specialist, etc).
Collecting a Debt
Before venturing down the legal route to collect a debt, due to an invoice not being paid, there are other avenues that companies could initially pursue such as using services that may help them gather additional information about their debtors (e.g CreditSafe or solocheck).
These credit checks can be used to protect your business prior to dealing with a potential client to analyse their ability to pay debts as they fall due, or opposingly check your debtors credit status prior to having to engage in legal action. Being credit safe and conducting a credit check of potential clients can help avoid having to chase debtors to receive outstanding funds in your account.
If you are in a situation where you need to go down the legal route to receive payment from your debtors, here at Carlisle Solicitors, our commitment is to take every step possible to ensure you get paid.
You can start by getting in touch online or call us on 01 653 3370 or email us at email@example.com and we will call you back.