3 Ways to Recover Business Debt and Get Paid for Outstanding Invoices | LegalVision
Anika runs a clothing store. Her business has been growing for the past few months, and she has signed on a number of customers with large orders. But she wasn’t so happy a month ago when many of her invoices hadn’t been paid. One of Anika’s customers, Eve’s Online Retailer, owed her $10,000 for a large order of her new range of clothes. So how can you ensure you get paid sooner rather than later? Here are three ways that you can recover your business’ unpaid debts. Firstly, you should contact the company that owes you money. Send them an email or call them to remind them of the amount they owe you. It can also help if you resend your invoice. Secondly, consider setting up a system which reminds you when invoices are due so you can keep track of late payments. If the company doesn’t respond to the overdue reminders, the best option is to send a Letter of Demand. The letter should set out: the amount of money they owe when they must pay by and the consequences if they don’t pay, like going to court. This lets them know that you are serious about recovering the debt. If they respond to the letter but they let you know that they are struggling to pay, you can negotiate a different payment agreement, like a monthly repayment plan. However, if they don’t respond, you may want to take your claim to court. Going to court is often the last step when trying to recover a debt because it can be complicated and expensive. You should make sure you have tried all of your other options first. If you have any questions about recovering a business debt, get in touch with LegalVision today.