One of the most common debt recovery actions we see in the recovery of unpaid overdue invoices.
A typical scenario would be, you run a business, someone gets a product or service from you on credit, you give them terms (14 or 30 days), and they refuse to pay.
Non-payment of overdue invoices is likely a breach of contract allowing you to commence legal proceedings to recover the outstanding debt.
Debt Recovery for Overdue Invoices
Cash-flow in small Queensland business is very important! If you run a small business in Queensland you will know exactly what I am talking about.
If your clients do not pay their invoices on time then this can seriously affect your cash flow. Not only that, the the time you spend chasing payment for overdue invoices is time that can be spent in other areas of your business.
So, what can you do?
Letter of Demand for Payment
A letter of demand for payment of overdue invoices is the first step to recovering your outstanding payment. After you have exhausted telephone calls and reasoning to a debtor’s good nature, a letter of demand shows the debtor that you are serious about recovering the outstanding money owed on the outstanding invoice or invoices.
You can try to draft and send a letter letter to debtor requesting payment yourself, but we suggest that a debt recovery letter from a law firm authored by a debt recovery lawyer packs a lot more punch.
We offer fixed fee letters of demand and letters of offer. Contact us for more information.
Letter of Offer
If you get no luck with a letter of demand, or there is some dispute as to the quantum or quality of the goods and/or services provided to this debtor, you might want to send a letter of offer or compromise. By discounting the amount owed (if you can) and trying to reach a compromise as to the amount payable, then this might incentivise the debtor to pay the debt.
Making an offer might also be relevant when it comes to the debtor paying your legal fees if the matter goes to court, but this is complicated and way down-the-line.
Going to Court for Overdue Invoices
If you get no response from the debtor; or the debtor is actively avoiding your calls; or they’re using the “ostrich” method of paying overdue invoices – by putting their head in the sand; to recover your debts, you may have to commence proceedings in the Court.
A Court action for the recovery of unpaid overdue invoices is started by a Claim and Statement of Claim. These are complex legal pleadings that will need to be drafted by a qualified solicitor.
We offer fixed fees for drafting certain court documents Contact us for more information.