First Steps in Debt Recovery #
Verifying the Debt #
Before taking action, ensure:
- All invoices and documents are in order
- Payment terms were clearly agreed
- Due dates have definitely passed
- Amount owed is correctly calculated
- You have proof of delivery/service
Initial Contact #
Best practices for first contact:
- Phone call to accounts payable
- Follow up email documenting the call
- Check for any disputes or issues
- Confirm receipt of invoices
- Get a commitment to pay
Document Everything #
Create a clear paper trail:
- Keep records of all communications
- Save emails and written correspondence
- Log phone calls and conversations
- Maintain copies of all invoices
- Record any promises made
Check Your Debtor #
Assess your debtor’s situation:
- Company house check
- Credit report review
- News and public records
- Recent county court judgments
- Insolvency register check
Payment Plan Discussion #
If full payment isn’t possible:
- Discuss payment plan options
- Get proposals in writing
- Set clear payment dates
- Consider partial payments
- Document all agreements