A recovery specialist will have all these as part of their collection armory, but do you?
1: Ability to pay
There is little point in spending further money instigating any court proceedings if your debtor is technically trading whilst insolvent, even if it has not been made official. It is important to remember that filed accounts are often out of date.
2: How much will it costs to pursue the debt?
It is not just the issue fee that is payable, do not forget to factor in the cost of your time and representation, for time is money.
3: Have you actually chased the debt?
Have you spoken to them, emailed the right person, have you followed pre-action protocol? If you do not know what the pre-action protocol is then refer it to a professional collection agent like ICM Group and we will ensure compliance.
4: In the event of a dispute can you prove your debt?
Do you have valid agreed terms?
Can you evidence the agreement
Can you prove that agreed works were completed?
Also:
If your debt is disputed, consider how much can you afford to spend proving your case in a litigious action. There is little point In taking up an action where funding is not available. Avoid the risk of being ‘hit’ with your debtors legal costs should you elect to pull out midway into an action.
Finally, do you know exactly who your debtor is?
The correct legal entity is absolutely vital when entering the litigation arena. Are they a limited company? A sole proprietor or a partnership? – obtain that information at the START of your trading relationship.
