What should a company do when a customer does not pay?

Corporate Legal Consultancy

The company should confirm the debt, review the contract and payment terms, preserve evidence, issue an appropriate demand and determine whether negotiation, arbitration or civil recovery is suitable.

Evidence

  • contract
  • purchase order
  • invoice
  • delivery confirmation
  • correspondence
  • bank statement
  • acknowledgment of debt
  • prior reminders

Before legal action, check whether payment is due, whether performance is disputed, what notice is required, what interest provisions apply and whether there is an arbitration clause.

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