Debt recovery

How to avoid bad debts - your collection options

There are a number of ways you can recover your money if things do go wrong. If a debt of £750 or more has accrued and is not in dispute, you can threaten bankruptcy proceedings (against an individual) or winding up proceedings (against a company). Alternatively you can threaten to take them to Court.

How to avoid bad debts - evaluate customer's finances

Although there are circumstances when you will be unable to recover a debt there are ways to strengthen your position as creditor. The more information you have about their financial situation, the easier it will be to recover debt. Above all, keep this information up to date.

How to avoid bad debts - be organised

Find out everything you can about your customer – this information will be invaluable if they find themselves in financial difficulty. Obtain all available contact details. Armed with the right contact information you have a better chance to discover early on if your customer is experiencing financial difficulty.

How to avoid bad debts - know your customer

Although there are circumstances when you will be unable to recover a debt there are ways to strengthen your position as creditor. The best time to start is at the beginning of a new trading relationship. Find out everything you can about your customer – this information will be invaluable if they find themselves in financial difficulty.

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