Beginning the year with a clean financial slate can be pivotal to your business’ health." />
Beginning the year with a clean financial slate can be pivotal to your business’ health.
Clearing debts early enhances creditworthiness, reduces stress, and fosters cash flow. It also facilitates strategic planning and growth, setting a solid foundation for a successful year ahead.
Here are five steps for recovering debt:
Some other actions:
Issue a Letter of Demand
The first stage in the debt collection process is usually to issue a letter of demand. This is a formal letter requesting payment of the debt. It sets out the specific amount owed and the period in which the debtor can make payment before you take further legal action.
Sometimes, issuing a letter of demand can result in the parties entering into negotiations concerning the debt payment. If parties reach an agreed payment plan, they can enter a binding settlement deed outlining the agreed proposal. This payment plan can be in full or instalments.
A formal letter can encourage a creditor to promptly take action. However, there is always some level of risk that a debtor may ignore the letter or raise a dispute concerning the debt.
Going to court
Going to court to recover a debt is intimidating, expensive and time-consuming. Therefore, you should think carefully before embarking on this final stage of the debt recovery process, especially if you have not exhausted your alternative options for getting paid. This article outlines what you should consider before filing your statement of claim.
Information on this website is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this information, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on information within.