The Smart Guide to Recovering a Trade Debt

The downturn in the economy has led to many businesses potentially suffering a double-whammy: more customers failing to pay their invoices on time or at all at a time when cashflow for a business relying upon settlement of those invoices is becoming even tighter.

Debt recovery, however, is not a simple process and particularly where the outstanding amount is fairly modest many firms will simply consider writing off the outstanding sum as being more cost effective that the time and effort required to recover it.  Very often, even if recovery is pursued, there are then difficulties of enforcement.

This link provides a checklist which highlights the advantages and disadvantages of the main options available to a business trying to recover a fairly modest trade debt which is a useful starting point to decide whether to take further action.