There are a plethora of debt recovery options including letters of demand, debt collecting agencies, statutory demands and legal proceedings (each of which is a topic in itself). Be aware of what debt recovery options are available to you; understanding the timeframes in which you need to take action, as well as the cost and potential time drain in pursuing the debt, will assist you in making effective debt recovery decisions for your business. The size of the debt, the identity of the debtor and your terms and conditions will all contribute to determining the most appropriate debt recovery mechanism. Spending $40,000 to recover a $20,000 is probably not the most effective use of your business funds and is an expenditure that the informed business owner can easily avoid.
Enforce recoveries is a team of experienced debt recovery professionals who provide support and results for our client’s businesses. We offer fixed fee service costs for initial letters of demand prepared by a lawyer. Get started now!
Strengthening your relationships with your lawyers, and improving their knowledge of your business and structure, can also assist to manage and recover those debts that become overdue quickly with minimal impact on the day to day management of your business.