Managing debt more effectively

It has become a common occurrence for business and trade customers to routinely delay paying invoices as a way to ease cash flow.

By taking these simple steps, company directors and business owners can minimise the risk of bad debts and in the process manage their business more effectively.

If you are supplying goods, ensure that your terms and conditions have binding retention of title clauses in them which means that ownership of the goods being supplied does not pass to the buyer, unless all invoices are paid.

Request payment of invoices as soon as they fall due. Invoices which are more than six months outstanding are far more likely to be unrecoverable and then written off.

For undisputed debts owed by companies of more than £750, consider serving a statutory demand which is a precursor to insolvency action.