August 9, 2021
Be organised and proactive. Maintain regular dialogue with customers, giving advance notice of when payment is due to ensure they are aware of their obligations. Where payment is not forthcoming by the due date, ensure you make contact with the customer as soon as possible to politely request that the debt is settled imminently.
Payment plans. Where the debtor appears to be in financial difficulty, attempt to negotiate a sensible payment plan to clear the outstanding amount by way of instalments.
Guarantees. If you have any concerns about the company’s ability to pay, aim to obtain a director’s personal guarantee where possible. By doing so, should the debtor company become insolvent, the guarantor can be chased in his/her personal capacity for the unpaid debt.
Limits. Set credit limits if you are hesitant that a customer will be able to make payment.
Professional assistance. Where you have exhausted all other options, instruct specialist debt recovery solicitors to recover the debt. Should this become necessary, Darwin Gray’s Litigation department will be happy to assist by initiating formal debt recovery procedures on your behalf.
Don’t Panic. There are various options available to you as an unsatisfied creditor which include issuing a statutory demand, consulting a debt recovery business or commencing formal legal proceedings to recover the debt.
Don’t Lose your cool. While having to chase outstanding invoices is understandably frustrating, sending threats or aggressive correspondence will only serve to sour relations with a customer who may otherwise have cleared the debt and continued to trade with you.
Don’t expect miracles. Even where a claim is undisputed, obtaining default judgment against a debtor will take several weeks owing to the Court’s timetables. Moreover, where judgment is obtained, it will then need to be enforced, which will further extend the time it takes to recover the unpaid amount. If a debtor is legitimately struggling, issuing proceedings may not get you the desired results and it may be best to work with them to reach an amicable solution.
Don’t lose hope. You should never feel that you have no recourse, as help is always at hand. Darwin Gray’s Litigation team will be more than happy to discuss your options and help you manage your debts.
Written by Siôn Fôn, Associate in Darwin Gray’s Litigation department
Email: sfon@darwingray.com
Direct dial: 029 2082 9107
I have worked with Darwin Gray for a number of years and the level of service, professionalism and timely response is second to none. I would highly recommend Darwin Gray to any business.”
Darwin Gray have provided us with a first-class service for many years now. They really take the time to understand our business and develop relationships which results in advice and support that is contextualised and effective.”
We have worked with Darwin Gray for several years and have always found their services and advice to be first class.”
An extremely professional and sincere company who make time for your queries and understand the need to break down certain facts and information to ensure everything is understood perfectly. I would highly recommend the company to anyone looking for any type of legal advice”
PSS has worked with Darwin Gray for many years. We have always received an excellent service. Prompt and professional advice and support.”
We have used several departments within DG recently and we have been very pleased with an effective, efficient and down to earth service. Very happy thus far and I expect that we will continue to use DG.”
Darwin Gray offer us truly superb services. Very professional, quick and services available bilingually which is very important to us, highly recommend.”
My “go to” in urgent and time sensitive cases for direction, support and advice. The team are quick to respond to calls or emails for advice and support on all matters. Always explain complex matters in a way a lay person can easily understand.”
