In the world of business, encountering clients with debt recovery issues is not uncommon. At McKenzie Consultancy & Legal, we frequently engage with businesses facing challenges in recovering money due from unpaid invoices. One recurring theme we notice is the frustration stemming from poorly constructed or non-existent terms of business. Many clients approach us with the misconception that they can retroactively impose interest and fees on outstanding payments, even when their terms do not mention it.
The Significance of Well-Crafted Terms:
The terms of business form the foundation of any commercial relationship. They are the blueprint that outlines the rules, expectations, and obligations of both parties involved. It’s crucial to emphasise that these terms are not arbitrary; they are binding agreements that must be settled at the outset of any business dealings.
Our Approach:
At McKenzie Consultancy & Legal, we understand the importance of meticulously drafted terms of business. Our clients benefit from terms that not only protect their interests but also provide a clear framework for debt recovery. We advocate for terms that allow for administration fees for chasing late payments, interest on outstanding invoices, and compensatory payments.
Flexibility Through Precise Terms:
One key advantage of well-drafted terms is the flexibility they afford in pursuing debt recovery. Your terms need to stipulate that late payment and legal fees are recoverable, even in cases suitable for the small claims track. This strategic inclusion empowers Businesses to navigate the complexities of debt recovery with confidence.
Avoiding the Pitfalls of Court Action:
While court action is a viable route for debt recovery, at McKenzie Consultancy & Legal, we prefer an amicable resolution whenever possible. Precise terms allow for negotiation and settlement outside the courtroom, streamlining the process and minimising the strain on all parties involved.
The Limitations of Court-Imposed Interest:
Businesses often fail to realise that without properly drafted terms, the ability to charge interest is limited until court action is initiated. Even then, the fees associated with interest are subject to the discretion of the judge, creating uncertainty and potential financial setbacks.
Success Stories:
We pride ourselves on achieving swift and successful debt recovery outcomes for our clients. One client, impressed by our efficiency, recently remarked, “We didn’t think we would see our money anytime soon, but it was in our bank account within a couple of weeks of instructing McKenzie Consultancy & Legal.”
Conclusion:
In the scope of debt recovery, the importance of well-crafted terms of business cannot be overstated. They serve as a roadmap for navigating the complexities of commercial transactions and empower businesses to claim what is rightfully theirs.
At McKenzie Consultancy & Legal, we stand ready to assist you in ensuring that your terms are not just a formality but a strategic asset in your pursuit of fair and timely debt recovery. So if you’re facing debt recovery challenges or want to strengthen your business agreements to ensure they protect you properly, contact us today at www.mckenzie-legal.co.uk. Let us help you build a robust foundation for your commercial relationships and guide you through the intricacies of debt recovery.