Why you fail to recover trade invoices?

We always want to have a good relationship with our clients, business partners. However, nothing is more difficult than  being in relationship that you must wrestle money from. Litigation can be expensive, long, tedious and complicated and just hope that your partner will pay one day almost always lead to losing money.

This article will give some tips for collecting on trade invoices. It is important to remember to be  proactive, rather than reactive in these situations.

Steps you can take to increase your chances of collecting your debt: x

1. 1Make sure your contract is clear: A clear contract will clearly spell out when payment is due.  Even if you do not have a written agreement, emails, text messages, phone chats and even in person conversations can all constitute a legally binding contract. A contract is in place when both parties agree to the scope and price of the project. This is why it’s important to have a  clear, simple contract instead of whatsapp messages only.
2. 2Send your invoices promptly: Keep close track of your invoices. If you do not send them out  promptly, there is a great chance that the other party may take this as a sign that you have given  them an exception from payment or agree with delayed payment.
3. 3Set up automated reminders: sending out reminder emails several days before a payment due  date increases your chances of receiving on-time payment. Sending out follow-up emails to  clients with overdue invoices within a few days after payment becomes overdue makes it far  more likely that you’ll receive payment. Money is in the follow up!
4. 4Offer Additional payment methods: Sometimes if a client is not paying it is because the current  methods in use are not convenient for them. Having multiple payment methods allows you to  increase the chances that you will collect and allows you to sign a diversity of clients.
5. 5Implement a late payment fee: Implementing late payment fees helps deter late payments and  sends a clear message that late payments are not acceptable.
6. Invoice factoring: Also known as accounts receivable financing. This is a method that allows you  to sell unpaid invoices to a 3rd party that will collect the funds instead. The upsides of this  method is that you recoup some of the money owed to you and you do not have to invest in  tracking down your clients.
7. 8Seek third party service providers to recoup losses for you at no upfront fee. Recoupex lawyers confirm that pursuing a debt promptly ensures money is recovered faster and in full. This is a great option if your debtor is not cooperative, or is in a different jurisdiction. Working with third party service providers is also  cheaper than pursing litigation individually.

The most important step is to be proactive in your debt collection.

Contact the lawyers at Recoupex to ensure that you are able to collect on your debt promptly.