bellataya.blogg.se

within 30 days of delivery) and therefore enforcement action may now be commenced to seek recovery of any monies owed. If the customer is withholding payment of goods supplied, it is likely that a business can rely on the terms and conditions agreed between the parties as set out in a contract and/ or terms and conditions attached to any invoice to determine that goods have been provided, they have not been paid for in accordance with payment terms (e.g. (i) what the customer is withholding payment of This will vary depending on: (i) what the customer is withholding payment of (goods or services), and (ii) the reason why payment is being withheld.

If you have determined that a customer is not willing or able to pay your invoices, you should seek legal advice as early as possible to determine the likelihood of recovering the monies owed to you from the customer. Early dialogue affords you the ability to decide ahead of time if you wish to continue to trade with the customer in question which may save you money in the long term if the customer cannot pay any of your invoices and you continue to supply them with goods and services.ĭetermine whether you will be paid or not It is therefore crucial at the front end to engage in active dialogue with any customers that are late in paying your invoices so that you understand the reason for this late payment and can assess if and when this payment will be forthcoming and if this is something that is likely to be a one-off or will continue to be something that affects the customer in question in the long term.

Although this may be a commercially sensitive topic, failing to engage with a customer who is late in paying your invoices consistently could be the first sign that your customer is in distress and as a result may not be able to continue to trade with you at all moving forward.

Practical tips to improve debtor collection Negotiate early and try to seek an agreement with your customerīusinesses often fail to engage early with customers who are late in paying their invoices, largely for fear that this may damage the commercial relationship with their customer whose trade may be crucial to the business in question.