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Guides & Resources

A guide to debt recovery for businesses

What to do when a customer won’t pay — and how to protect your position before it gets that far.

Long-form guides like this build trust with prospective clients and help the site rank for the questions people search for. The copy below is general sample content, not legal advice.

1. Check your paperwork

Start with the agreement, invoices and correspondence. Confirm who the debtor is (the company or an individual), what was agreed and what remains unpaid.

2. Send a letter of demand

A clear letter of demand setting out the amount owed and a deadline for payment resolves many debts without further action — and is often an important step before starting proceedings.

3. Consider your options

If the debt remains unpaid, options may include negotiating a payment plan, commencing proceedings in the appropriate court or, for companies, issuing a statutory demand. The right choice depends on the amount, the debtor’s circumstances and your commercial relationship.

4. Enforce the outcome

Obtaining judgment is not the end of the process. We advise on practical enforcement options to turn a judgment into payment.

Prevention

Reduce the risk of bad debts

Clear terms of trade

Well-drafted terms set payment expectations and your remedies.

Personal guarantees

Consider guarantees from directors when extending credit to companies.

Act early

The longer a debt is outstanding, the harder it becomes to recover.

FAQs

Debt recovery questions

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