Ensure customers pay you on time

Court action should be seen as a last resort. Before you take court action, you should consider the alternative methods of recovering debt outlined below.

While you consider the options, you should continue trying to recover the debt using the usual methods eg telephoning the debtor to remind them that the payment is now overdue.

Involvement of one of the following may also assist:

• An accountant - some offer debt collection services as well as advice on credit control and debt collection procedures.
• A solicitor - some solicitors specialise in debt collection. They can issue powerful letters in a short space of time. Agree a fee for this service in advance.

You could also use a debt collection agency - see advantages and disadvantages of using a debt collection agency.

A further alternative is for you, your debt collection agency or solicitor to issue a statutory demand, promising an application to court for the formal winding up of the customer's business if payment is not made within 21 days.

Finally, you could consider:

• negotiation
• mediation
• conciliation
• arbitration

For more information see recover debt through court.