What is the Process for Business Debt Recovery? - Cobra Financial Solutions Ltd

No-nonsense, straight-talking debt collection service

As a small business owner, you are sure to know that unpaid invoices can be a somewhat regular occurrence, but what happens if your debtor continues to refuse to pay? Regardless of whether it’s an ongoing service that you provide or a one-off and bespoke job, unpaid invoices and late payments can cause serious cash flow problems for a business of any size. Unfortunately, you are likely to come across clients and customers who refuse to pay at some point during your time in any industry, people that assume they will get away with not paying if they avoid doing so for long enough. This is where the business debt recovery process comes in, and we are always on hand to help.


What Happens When Someone Refuses to Pay?

When you are sending an invoice, you need to make sure that it includes all of the relevant information needed for the payment, including clear descriptions of what you are charging them for, the amount they owe and your payment terms. They should know exactly what you are asking of them and the payment methods available. Of course, invoices can be forgotten about when someone is busy at work, so chase them once it becomes overdue. You can send an email reminder or you can phone them, simply reminding them that they still need to pay. If they don’t, you can think about escalating things.


If the invoice continues to remain unpaid, stop doing any further work for them, and only resume once the debt has been paid. A lot of the time, this is enough to solve the problem. Their business could suffer without your services and so they will be keen for you to continue on.


Of course, there is always the chance that a debtor will continue to avoid paying you, even after you have paused work. This is the time to consider sending a letter before action. This is a final warning to the debtor, letting them know that they have until a certain date to make the payment – usually within 14 days, but sometimes longer – otherwise you will begin legal proceedings.


More often than not, the fear of going to court will make someone pay, especially as doing so can result in additional costs. Pursuing legal action against your client or customer should be the last resort, and it’s always best to enlist the help of a debt collection agency beforehand.


Professional Business Debt Recovery Services

At Cobra Financial, we provide a wide range of debt collection services, and this includes business debt recovery. Regardless of your business size or industry, the amount owed or the type of debtor, you can rely on us to recover the money that is rightfully yours. Get in touch with our knowledgeable team to find out more.

Find out more about our awards and accreditations +