Posts Tagged "letter of demand"

Chasing Debts – How To Issue A Letter Of Demand

Posted by on Jan 30, 2014 in Blog

Chasing Debts – How To Issue A Letter Of Demand

The cash flow of any business is critical.  Even if your business is making sales and operating successfully, if you do not have control over this cash flow and your debtors are not paying on time, you can face liquidity issues.  Therefore, it is important to have a clear process for chasing debts and recovering outstanding amounts.  One way of doing this is to issue a letter of demand. Recently I read a great article on the topic, titled:  How to get paid: issuing a letter of demand, and these are some of the points the author made. There are three main methods you can undertake to recover what is owed to you and these are: Use a debt collection agency.  They will charge a fee whether funds are recovered or not as well as a percentage of the actual amount that is recovered. Commence legal action using a solicitor. You can issue a letter or demand. The benefits of the letter of demand are that you manage the process yourself, it can save time and cost less than the first two options.  The letter of demand is normally sent after you have already made several requests for payment...

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