As a small business, it’s always advisable to set your business up with good debt management habits from the outset. No one wants to resort to hiring a debt recovery lawyer or litigation lawyer in Chatswood if they can help it, but in some instances, you may find you need to.
There are measures you can put in place to help prevent this from happening which we are going to discuss today.
Debt recovery for all businesses is very important, but can be even more so for small businesses since cash flow can sometimes be challenging for smaller businesses. This can also affect profitability.
Set your business on a positive path, by putting in good business practices to prevent being in a position where you need to continually chase money owed to you and potentially requiring the assistance of a debt recovery lawyer or litigation lawyer in Chatswood.
So what are some of the measures you can put in place to help recover your debts quickly and on time?
Let’s dive in.
Know Who You’re Dealing With
From a business context, does the business you’re dealing with have a good credit rating? Are they in liquidation or administration? Do they have a good reputation?
These types of questions and others can be answered by doing credit checks and your own due diligence prior to dealing with a company.
Get some small business legal advice from TY Lawyers in Chatswood if you need some professional guidance.
Adopt Good Business Practices
Some of the simple things you can do to encourage payment from your customers include things like: early or on time payment discounts, invoicing customers without delay and clear, easy payment options.
Customers know what’s expected from them and how to pay.
Another key one is to never send out goods or provide services until payment has been obtained.
Obviously for some service industries this isn’t a realistic thing, but it’s still a good mantra to go by. Perhaps even obtaining a small deposit to ensure clients turn up for service based industries is another way.
Some of the other key things you can do is set up payment reminders to customers/clients, keep all records of correspondence with the customer in question and keep communication lines open in case there is a genuine problem the customer is facing.
TY Lawyers Chatswood can provide you with small business legal advice if dealing with debt recovery or litigation in your business relationships.
If all else fails and you still require assistance recovering your debt by a debt recovery lawyer or litigation lawyer in Chatswood, TY Lawyers can assist with next steps and your options.
If communication cannot be established, a letter of demand can be written, which is formal written request for the monies owed to be paid.
TY Lawyers has a very high success rate of 80% response to their initial Letter of Demand.
In the cases where the letter of demand has not been successful, mediation followed by litigation can follow thereafter.
It’s important to weigh up the costs of legal proceedings which your debt recovery lawyer or litigation lawyer in Chatswood can assist you with, should you wish to go down this path.
If you need a debt recovery or litigation lawyer or require some small business legal advice, get in touch with TY Lawyers in Chatswood. Personalised and professional service.
Call TY Lawyers Chatswood on: 02 8007 0135.