Debt Recovery Advice

Payment Terms

Set out and agree payment terms in advance and in writing. Its better to know what to expect than leave things to chance
Watch out for any wording in documents from your clients that changes the agreed terms ie. If you accept their order you might be signing to their new payment terms if you fail to challenge at this stage their terms will take precedence
Payment terms on your invoices should include the words –"We will exercise our statutory right to claim interest (8% over Bank of England base rate) and compensation for debt recovery costs under the late payment legislation if we are not paid according to our agreed credit terms". Even if you don't intend to do so it is a very useful deterrent against late payment
Raising a further invoice for interest and late payment charges is a great way to gain your clients attention and raising the profile of your outstanding invoices
If your client tells you they will have to take longer to pay in the future, you will have to decide how important their business is. If they are claiming extended payment terms for invoices already raised, you should demand payment under the previously agreed terms and make new agreement for future trading with extended terms – should you wish to do so

Ensure invoices are fully compliant with HMRC if VAT registered visit: http://www.hmrcvatinvoices.co.uk
The sooner you ask the sooner you get paid – send by 1st class mail or email
Get invoices right – raising credit notes or re issuing invoices takes up time better used elsewhere and changes payment due date. Have a system for resolving disputed invoices promptly to avoid stalling tactics