A survey conducted on the Better Payment Practice Group (BPPG) website during September showed that solicitors are the most popular source of advice in tackling slow payers.
Slow payers frequently ignore reminders because they are waiting for a significant threat. Using an authoritative third party such as solicitors is a strong motivator. Solicitors can swiftly issue a powerful letter that clearly communicates the consequences for the customer if they do not pay.
It is important that the letter clearly defines what would happen and when. This intended action could take the form of an application to court for the formal Winding-Up of the business if payment is not made within 21 days.
Furthermore, the BPPG recommends that businesses state clearly their intention to apply their statutory right to interest.
