What do you do when a customer does not pay their bill? Cash flow is essential to any business. One significant debtor, or a handful of small debts, can have a significant negative impact and cause disproportionately difficult problems. We take a straightforward, direct and cost-effective approach to debt recovery, and can help maintain relationships with good customers, or make a point that you will not be taken advantage of by the difficult ones. 

Can’t pay, won’t pay?

In the vast majority of cases, one letter from us to the debtor will prompt payment, even where a debt has been unpaid for months or even years. The threat of court action – along with additional penalties and interest we can apply – is often enough to push the debt to the front of the queue. 

All we need is a copy of the unpaid invoice to get started. We can work out any interest and penalties that can be added on. 

In the few cases where a demand from us does not get a positive response, service of a Writ or Summons after Court action is raised will recover payments in most cases. By that stage, Court expenses would also be payable by the debtor, meaning this is a cost-effective approach. 

If the case is undefended, we have extensive experience of enforcing decrees (a Court judgement in your favour) and recovering payment from difficult debtors. If the case is defended – which is a rare event – we have a team of experienced litigation solicitors willing to fight your case and give practical advice. 

Self-Help

The easiest way to avoid having to chase debts is to have good credit control procedures in the first place. There are many steps that can be taken. For example, capturing the correct details for the client at the start is simple but can avoid pitfalls later on. Is your client an individual, a partnership or a limited company?  What is their address? Can you get a payment to account before work commences?   

The start of a relationship with a new client can also be a time to capture information that may help recover payment later on, for example, by obtaining information about where they bank or about their other trading premises. 

Well structured terms and conditions can also help – for example, by allowing you to charge additional interest or to recover legal costs where payment is late. 

Our Approach

The McKinstry Company can assist in all of these areas. Where a debt is overdue, the approach we take is that we do not make empty threats: if we threaten Court action then Court action will follow if the debtor does not pay. If you want an assessment of your current credit control procedures, or advice on your terms and conditions, we would be happy to assist. 

To contact Colin call 01465 713 118 or email colin@mckinstry.co.uk