We advise sending reminders for unpaid invoices to the debtor after 30 and 60 days from the initial invoice being issued. If the invoice still remains unpaid after this time, we recommend engaging Enforce Recoveries to assist you recover the debt. If the debtor is refusing to pay their account after 60 days, act immediately. The faster your account is handled by Enforce Recoveries, the likely the better outcome.
Not having a procedure in place for debt management can cause your business to suffer financial constraints which, if not dealt with early and effectively, could cause serious financial concern and cash flow management for your business.
A business owners’ focus should be on developing and sustaining a great business and investing in their success, not chasing debtors. By involving Enforce Recoveries, we do the chasing for you, allowing you to focus on running your business. This inevitably maximises cash flow for your business whilst reducing your operating costs.
There is no minimum or maximum debt amount required, before you can engage Enforce Recoveries. However, the amount of the debt will assist to determine the most appropriate and cost effective steps required to facilitate recovery.
Enforce Recoveries cannot provide any guarantees that the debt will be recovered. That being said, given the experience of Enforce Recoveries, we will be able to assist you and advise on the recoverability of the debt and suggest recovery options to improve the probability of you recovering your debt.
This is dependent on a variety of factors in respect of the debtor including but not limited to the quality of your documentation, the existence of any guarantees provided by your debtor, the steps you have taken to recover the debt, whether the debt is in dispute and the extent of that dispute and debtors willingness and ability to pay the debt.
– Company becomes insolvent without director guarantees
– Size of debt does not warrant further action
– Bankruptcy if sole trader or individual
– Passed limitation period
– Unable to find debtor
One of the questions we ask about the debt is if you would like to preserve your relationship with your debtor. We understand business relationships, and if preserving a relationship is important to you, we will take this into account when completing the Letter of Demand.
A letter of demand is a letter to your debtor outlining the amounts owning, why this money is owing, the steps taken by you to recover the debt from the debtor and a request to pay the debt within 7 days from the date of the letter. The purpose of a letter of demand is to put the debtor on notice that you intend to take more serious action to recover any debt owing to you. Often a letter of demand is a final reminder to the debtor prior to you taking legal action to recover the unpaid debt.
Generally speaking, the statutory limitation for bringing a claim under a contract, such as enforcing a debt, is 6 years. That means, in most instances, if the invoice is older than 6 years, you cannot enforce the debt. The limitation period will be re-started if one of the following has occurred.
– The debtor has made a payment toward the debt in the last 6 years; or
– the debtor acknowledges the debt in writing (must be in writing and signed and constitute a clear acknowledgement that the debt exists).
If the creditor has a Court order for the enforcement of the debt, the limitation period is extended to 12 years.
If you have not got a court order extending the limitation period to 12 years, have not received a partial payment for the outstanding debt in the last 6 years, or do not have in writing an acknowledgement of the debt from the debtor, then you cannot lodge your debt with Enforce Recoveries.
We charge $66 (including GST) to complete and send a Letter of Demand to your debtor. All Letters of Demand are reviewed by a lawyer at BAL Lawyers prior to being sent out.
Your details, the details of your debtor, any relevant evidence pertaining to the debt including invoices, overdue statements, and (if applicable) any previous letters of demand.
To resolve payment to you as soon as possible, and avoid double handling of money, we give you the choice to instruct your debtor/s to either pay you directly as per the terms of your invoice, or to allow you to nominate a bank account for the funds to be payed into.
As part of your account with Enforce Recoveries, when you sign in, you can view all previously submitted matters as well as any matters still in progress or not yet lodged and paid for.
A statutory demand notice is a formal, verified demand issued under section 459E of the Corporations Act 2001 (Cth). It is a very effective instrument for ascertaining whether a company can pay its debts as and when they fall due. If such a demand is correctly issued and served and the debtor company fails to pay the debt within 21 days from the date of service of the demand, or otherwise fails to make arrangements to pay the debt to the creditor’s satisfaction, the company is presumed ‘insolvent’ and the creditor can make an application to wind the company up.