Managing cash flow is one of the biggest challenges a business can face. Making sure your invoices are paid on time and effectively responding to customer debts is all part of running a successful business.
NatRoad has released a Debt Recovery Guide in partnership with Bristow Legal to help guide members through the often difficult and complicated process of recovering debt from customers who are late in paying.
The guide explains how you can go about recovering money owed to your business for goods or services provided to a customer. It works through four phases, explaining the options you have and the actions you can take.
- Phase One will take you through how to establish that you have a debt to recover. It might sound obvious, but it can be difficult to demonstrate a customer owes you money if you cannot prove the details of the transaction. If you cannot demonstrate the existence of the debt it will be very difficult to recover the money owed if the debtor refuses to pay.
- Phase Two will assist you in planning what to do about the debt. This includes deciding if it is worthwhile acting to recover the debt and, if so, what is the best pathway or pathways to use. Once you have considered your situation and all the pathways that exist, you should plan how you will try to recover your debt. Your plan need not rely on just one pathway.
- Phase Three is actioning your plan to recover the debt; this section of the guide contains advice to keep in mind when navigating this phase.
- Finally, Phase Four is designed to help you use your experience as a learning opportunity and review your business arrangements to avoid a similar situation in the future.
We have also included an example Letter of Demand to get you started in your debt recovery process.
The Guide is general information and is not intended to be a substitute for expert legal advice given to you about your circumstances.