It’s hard enough in business at the best of times. When you don’t get paid, it just gets worse.
There are some very simple and effective things you can do to increase your chances of getting paid.
The first is a strong and effective set of terms and conditions. It doesn’t matter if you are selling goods or services (or both). A document that sets out the obligations on you and the obligations on the customer is the best start.
They need to clearly set out what you are providing and what you are to be paid and when. They will also set out your obligations and the limits on what you will do and be liable for as it will for your customer.
The second is to have a clear process internally to make sure that as soon as any issue arises, it is dealt with efficiently and clearly. Think carefully but always respond and confirm responses in writing. If you are unsure about any aspect of how you should respond, call us. If the question is short and can be dealt with over the phone, you won’t get a bill! Its part of our value add. It will also mean that you don’t inadvertently trap yourself.
If payment isn’t resolved quickly, don’t delay. Be proactive.
The legal options for getting paid are many and varied. There is no “one size fits all”. You will always need something that is tailored to your issue. The best approach is to assess and then devise the approach that will see you recover as quickly and cost effectively as possible.
That does not mean a simplistic “debt collection” that just follows one process and hopes for the best but rather, a considered strategy that has the best chance of success.
It’s about the result, not the process.