In the course of running a small business, it is not unusual for your account customers to fall behind in the payment of their account.
As with most businesses, the first thing you do is contact the debtor to remind them that they are late paying their account. Sometimes your customer has genuinely forgotten and the ‘reminder’ is appreciated.
What If a Reminder Goes Unheeded?
A problem develops when the ‘reminder’ goes unheeded. What are your options? You can send another reminder; or you can contact Porta Lawyers. We can assist you by writing to the debtor and sending that person or company a ‘letter of demand’. More often than not, this letter prompts the person to pay their overdue account. For $200 + GST, this fee can be good investment.
Always Keep a Record
It is important that you keep a record of your tax invoices and the times you have contacted the debtor. If you phoned to remind them of payment, make a note of the date and time you made that phone call. If you sent an email, keep the email. These records are essential if you need to take the next step – filing a Claim with QCAT or with the Magistrates Court.
The information in this article is merely a guide and is not a full explanation of the law. Porta Lawyers or Childcare Concepts cannot take responsibility for any action readers take based on this information. Information in this article refers to laws in Queensland, laws may vary in other states. When making decisions that could affect your legal rights, please contact us for specific professional advice.
If you need assistance in recovering outstanding accounts, please do not hesitate to contact Warren by email on email@example.com or by phone on 3265 3888.
If you found this blog useful, you might also like: