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Order negotiations 'can minimise debt collection difficulties'

Published on 5 Jun 2009 under category: legal

Companies looking to avoid debt collection difficulties should ensure they are willing to negotiate terms when an order is placed by a new customer, an expert asserts.

Clive Rusden, deputy president of the Southern Society of Chartered Accountants, tells the Salisbury Journal that smaller firms are not powerless against the people they deal with.

He advises individuals to have an effective system in place where credit checking is required to ensure that these limits are up-to-date and reviewed.

"Late payment legislation hasn't curbed the culture of late payments to suppliers," he tells the publication.

He states that involving senior staff when there is sign that money owed is going bad is another important step in the debt collection process.

Mr Rusden says that companies should consider whether or not to take those orders which will need longer payment terms, taking factors such as cashflow and profitability into account, the news provider reports.

The Birmingham Mail recently revealed that cost reforms for commercial litigation are being trialled in the city's courts following recommendations by Lord Justice Jackson.