In short
The credit management measures that reduce the number of accounts ever requiring recovery.
Onboarding discipline
Record the full legal entity and registered number of every new customer, confirm the terms of business are incorporated, and keep the account-opening documentation retrievable.
Terms that work
Clear payment terms, an effective interest provision and, where appropriate, retention of title or a guarantee, are worth more than any amount of later chasing.
Defined escalation triggers
Agree in advance what happens at 30, 60 and 90 days, and who authorises placing an account with specialists. Consistency is what changes debtor behaviour.
Act early
Recovery prospects generally deteriorate with age. Early, measured action preserves both the debt and the relationship better than a late confrontation.
Sources & references
- Civil Procedure Rules and the Practice Direction on Pre-Action Conduct and Protocols
- Pre-Action Protocol for Debt Claims
- Late Payment of Commercial Debts (Interest) Act 1998
- [INSERT ADDITIONAL VERIFIED SOURCES USED FOR THIS GUIDE]
This guide is general information only and does not constitute legal advice. Procedures described relate principally to England and Wales. Every matter is assessed on its own facts and contractual documentation.