The team at innovative leading law firm Taylor Walton have today launched a new service called TW Collect to help local businesses deal with bad debt.
It is a commercial reality that businesses of all shapes and sizes will at some point be required to deal with customers or suppliers who fail to pay debts on time, or at all.
“It is crucial that businesses react swiftly and appropriately when this situation arises” comments Saljuq Haider, Head of the new TW Collect service. “Clearly, there are sometimes circumstances where the long-term customer relationship takes precedence over pursuing a relatively low unpaid debt. However we recommend that businesses should adopt a rigid internal policy for tackling late and unpaid debts. It is important that customers are made to understand that late payment is not acceptable and that non-payment is taken seriously.”
The new service is designed to streamline what can appear to be a daunting process, and work is undertaken on a ‘no recovery – no fee’ basis.
For those looking to protect themselves against late payments and bad debt, here are Taylor Walton’s top five tips:
Ensure your terms and conditions are incorporated and that they include charges/interest for late payment
If dealing with a company, consider obtaining personal guarantees, if creditworthiness checks indicate a higher than average risk
Ensure that customers are made aware of payment terms
If dealing with a new business, obtain trade references to identify a payment history profile
Ensure that a complete “paper” trail is maintained for all orders