21-05-2008
Find the fastest route to the loot as credit crunch starts to bite
A leading business dispute resolution expert is urging Gloucestershire businesses to take proactive steps to introduce tough credit control procedures to avoid bad debt and prolonged disputes over payment.
Partner Philip Radford, of BPE Solicitors, understands that cash is king for many finance directors who want to ensure “the loot is in the boot.”
He says that when customers are slow to pay or a dispute arises over an invoice in today’s climate some businesses may not be financially resilient enough to ride the storm of a protracted delay.
Philip, dispute resolution expert at the Cheltenham-based practice, says businesses should be wary of giving credit unless they have satisfied themselves that the customer has the means to pay. He also recommends that every business should rely upon robust terms and conditions to, at the very least, fix credit terms and penalties for late payment.
“When money flow slows down all kinds of imaginative excuses for non-payment come out of the woodwork, along with future promises to pay,” said Philip, an experienced mediator.
“Many businesses soon discover that investing in the services of an experienced credit controller is money well spent. Do not forget the old adage that “he who shouts the loudest gets the attention.”
“Despite all these precautions sometimes your credit control system will not deliver the money you require and you will have no alternative but to look to lawyers to resolve the dispute. Whichever approach you prefer, be it arbitration, court proceedings, mediation, or in the case of construction disputes, adjudication, the key to successful financial recovery is speed of response,” he added.
Philip warns that often when cash is tight claims are defended to defer payment. He advises that to shortcut the delay and expense of a contested claim at a trial, provided that the defence raises no credible or legitimate issues, summary judgment can be applied for in a matter of months.
Mediation is another potentially speedy option often relied upon when both parties are prepared to explore a compromise. As mediation is considered “without prejudice and confidential” it will not impact on any future claim through the courts if a settlement cannot be reached.
“Speed of response when chasing payment or resolving disputes over invoices can sometimes be key to the survival of a business. Dealing with credit control in a robust yet professional fashion, and acting quickly to tackle a dispute, will make all the difference,” concluded Philip.
Partner Philip Radford, of BPE Solicitors, understands that cash is king for many finance directors who want to ensure “the loot is in the boot.”
He says that when customers are slow to pay or a dispute arises over an invoice in today’s climate some businesses may not be financially resilient enough to ride the storm of a protracted delay.
Philip, dispute resolution expert at the Cheltenham-based practice, says businesses should be wary of giving credit unless they have satisfied themselves that the customer has the means to pay. He also recommends that every business should rely upon robust terms and conditions to, at the very least, fix credit terms and penalties for late payment.
“When money flow slows down all kinds of imaginative excuses for non-payment come out of the woodwork, along with future promises to pay,” said Philip, an experienced mediator.
“Many businesses soon discover that investing in the services of an experienced credit controller is money well spent. Do not forget the old adage that “he who shouts the loudest gets the attention.”
“Despite all these precautions sometimes your credit control system will not deliver the money you require and you will have no alternative but to look to lawyers to resolve the dispute. Whichever approach you prefer, be it arbitration, court proceedings, mediation, or in the case of construction disputes, adjudication, the key to successful financial recovery is speed of response,” he added.
Philip warns that often when cash is tight claims are defended to defer payment. He advises that to shortcut the delay and expense of a contested claim at a trial, provided that the defence raises no credible or legitimate issues, summary judgment can be applied for in a matter of months.
Mediation is another potentially speedy option often relied upon when both parties are prepared to explore a compromise. As mediation is considered “without prejudice and confidential” it will not impact on any future claim through the courts if a settlement cannot be reached.
“Speed of response when chasing payment or resolving disputes over invoices can sometimes be key to the survival of a business. Dealing with credit control in a robust yet professional fashion, and acting quickly to tackle a dispute, will make all the difference,” concluded Philip.
