Before proceedings
- Assemble the contract, invoices, delivery records and correspondence.
- Confirm the amount claimed and any agreed credit terms.
- Issue a formal demand setting out the sum and a deadline.
- Consider a payment arrangement where the debtor is willing but unable to pay in full.
Assessing whether to litigate
- The strength of the documentation supporting the debt.
- Whether the debt is genuinely disputed.
- The debtor's apparent ability to satisfy a judgment.
- The proportionality of cost and time to the sum claimed.
Preventing the problem
- Use written terms with clear payment obligations.
- Invoice promptly and follow up systematically.
- Carry out basic checks on significant new counterparties.
- Escalate consistently rather than allowing arrears to accumulate.