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The Covid pandemic has impacted many industries, such as travel and hospitality. If your clients are in a struggling sector, then you may be one of many businesses struggling to get paid the money you are owed for your products or services.
In the last instalment of our companies in crisis Q&A series for company directors, senior litigation lawyer Alex Neale talks you through the steps you can take if your company is due monies from several customers.
Key points
- Before debts are incurred you should carry out due diligence on your clients.
- If you are concerned about their ability to pay, you should refuse credit or impose credit limits.
- Raise your invoices promptly.
- If invoices are unpaid, you should act quickly to maximise your chances of making a recovery.
- There are various formal debt recovery options if your clients don’t pay. Which one you should use will depend on the nature of the debt and the legal status of the debtor.
If you are owed money, our DebtFast team can help you to recover these debts.
- Part one: I am concerned for the future of my company because of Covid-19. What steps should I take?
- Part two: I have signed personal guarantees to my company’s lenders but what happens if the company then becomes insolvent?
- Part three: How can I tell if my company is insolvent?
- Part four: My company is receiving pressure from creditors but it can’t afford to pay what it owes. I think that my company is now insolvent, what options do I have?
- Part five: Should my company continue to trade if I know that it has no way of paying all its debts?
- Part six: If my company is placed into an insolvency process, how will this affect me?
- Part seven: What duties do I owe as a company director and do my duties change if the company becomes insolvent?
- Part eight: My company is due monies from several customers. What steps can I take?
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.