You work hard to maintain the success of your company, and you expect your clients to pay you in time. However, sometimes this does not happen, and if you do not get paid in time, you will experience cash flow issues. One of the main causes that lead to business failure is stagnant cash flow. In this situation, you have to pursue your delinquent clients, because you need money to run your business. In case you have no idea how to do this by your own, you have the possibility to ask the help of a company that offers late invoice collection London, because they are professionals, and they know how to deal with this type of clients. Here are some tips that will help you improve your company’s situation.
Follow your clients on your own
You should not be afraid to follow up a late invoice, because even if persistence and prompt action may be uncomfortable for your clients, the result may be that they pay you in time. When you create an agreement with a client, you should include a policy on lateness. Make sure that when the late period expires, a person from your company gets in touch with the client, and asks them if they experience cash flow issues and if they need more time to pay their debts.
Hire a collections agency
In case you do not have success on your own, you should call a collection agency to help you pursue your money. The rule is to hire professionals when your invoices remain unpaid more than 90 days. It does not matter the sum the client has to pay, the collection agency will help you. Nevertheless, you will have to offer the proof of the debt, so make sure that you keep everything in order.
Sue the debtor in a small claims court
In case you do not want to collaborate with a collections agency, you have the possibility to take the debtors to small claims court. Depending on the state where you run your business, the individual limit of the sum you can sue a person or company may vary. Therefore, it is advisable to check the regulations before starting the process. But you have to know from the beginning that even if you obtain a judgement in the favour of your company, this does not mean that you will get back the money you are owned.