Credit Card Debt Guide

In normal circumstances a business will want a bill to be settled in the month after the account date but this must be specified in the contract and agreed by both parties, in writing. In the absence of such an agreement then in the event of dispute the law defaults to 30 days from the account date as the last date for payment. Late payers can be the bane of small business accounts, as there could be a regularity to some; perhaps they send payment two months after the account date or perhaps they are normally on time but are occasionally late. In any event it makes life hard for the small business to map out the future work as they may need to pay for materials that were used for the work concerned and whilst they may well have funds to pay their suppliers, they may have to purchase further supplies for other contracts and pay wages, naturally. The late payer can cause problems in creating a deficit in the books later on when it is time to settle their own bills, so how can the small business advise the debtor to pay up without losing a valuable client? In any event the last thing the creditor wants to happen is to be forced to write off a debt, so they must make the effort to collect them.

For a small business the decision may well be between managing the Debt collection in-house, handing it over to a solicitor or employing a Debt collection business. The last two options can involve significant costs for a small ]company and so may be discounted by many. The internal route will need commitment in man hours, but by the use of a good Debt collection software application the time spent can be optimised to do the work efficiently. Some packages are inexpensive, not cheap, and are on sale for under

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