Improving cash flow – five top tips for your business

By Michael Higgins, Managing Director of Lovetts Solicitors 2. Refer

All businesses rely on cash flow to survive. At Lovetts Solicitors we specialise in helping businesses recover debts. Here are our five Top Tips on enhancing recovery.

1. Get a signed contract or credit account application form Good terms and conditions will strengthen your position when a customer pays late. Tere’s a miscon- ception that if you refer to your terms on an invoice, these terms will apply to the contract. Tis isn’t correct and a signed credit account application form or best practice.

contract is to your terms in an

e-mail footer More and more business is done by email, meaning contracts can be formed during email correspond- ence. To ensure incorporation of your terms, make it company prac- tice for everyone to have an email footer referring to your T&Cs.

3. Create a credit control and debt-collection policy Statistically, the majority of your customers will pay late. Ensure you have a credit control and debt-col- lection policy. It’s good practice to call a customer before your invoice becomes due to check the invoice has been received and is on a payment run. Not having an invoice is the number one excuse for late payment.


4. Have a specialist debt-re- covery solicitor as a supplier Unfortunately, some customers will have a policy of not paying until they receive a solicitor’s letter in order to protect their own cash flow. At Lovetts, we offer a Letter Before Action (LBA) for as little as £1.50 plus VAT. Tis secures payment within 86% of our cases without the need for further legal action. Te percep- tion among 58% of businesses is

that chasing late-paying customers through solicitors could damage the relationship. Tis fear is unfounded as our clients often continue to trade with their customers after our LBA has been sent and payment secured.

5. Retain control of your debt collection even if you use a solicitor Once you pass your debts to a solic- itor, it shouldn’t mean you lose control. Lovetts’ online CaseMa- nager portal allows clients to give

instructions, obtain reports and view all of their cases 24/7.

Above all, taking a measured but proactive approach to cash flow is key. Tis is the lifeblood of your business, and putting a profes- sional recovery process in place can enhance business growth and success.

T: 01483 457500


Case Manager is by far the best system I’ve seen in my 20-odd years in credit management. I’ve found Lovetts to be extremely professional and efficient in what they do. And I haven’t found anybody else who can offer me a letter before action at £1.50. When I looked at it last, 83% of our debtors would pay on the late payment demand. Tat’s brilliant. So in seven days, you’ve got your money,” said Mark Bebbington, Civil Rail Solutions

Do your customers owe you money? At Lovetts Solicitors, we’re here to help you formally recover your business debts.

With over 20 years experience in all aspects of debt collection and recovery, we know exactly how to help you.

Lovetts solicitors

Letter Before Action (LBA) from £1.50 plus VAT UK Debt Recovery – Over £40 million collected every year International Debt Recovery – Debts collected in 100+ Countries Access to an online Client CaseManager portal 24/7 Legal Advice Package for Disputed Debts

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