Managing debt more effectively

By Stephen McArdle, associate solicitor, commercial litigation, KBL Solicitors LLP.

It has become a common occurrence for business and trade customers to routinely delay paying invoices as a way to ease cash flow.

An absence of ready cash hinders the ability to fund a business properly and cash flow is often cited as the number one challenge facing many SMEs.

By taking these simple steps, company directors and business owners can minimise the risk of bad debts and in the process manage their business more effectively.

Ensure that terms and conditions are up to date and legally compliant. Binding terms and conditions can be easily enforced.

If you are supplying goods, ensure that your terms and conditions have binding retention of title clauses in them which means that ownership of the goods being supplied does not pass to the buyer, unless all invoices are paid.

Carry out regular credit checks and request payments on account where appropriate.

Request payment of invoices as soon as they fall due. Invoices which are more than six months outstanding are far more likely to be unrecoverable and then written off.

Take swift debt recovery action in the County Court.

For undisputed debts owed by companies of more than £750, consider serving a statutory demand which is a precursor to insolvency action.

Assess whether the debtor has assets such as equipment or stock which could be seized by bailiffs or may own a property against which a court judgment could be secured. Seeking professional advice early on and on a continuing basis e.g. from legal, insolvency or accounting professionals as required. Third party advice can afford a new perspective and options.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

Fuuse raises further £6m as it heads to profitability COO Nik Southworth, CEO Michael Gibson, CFO Sonia Davies.

Fuuse raises further £6m as it heads to profitability

13 Oct 2025

2

Preferred developer named for strategic site Barnfield named as preferred developer for site

Preferred developer named for strategic site

13 Oct 2025

3

Warden completes hospital improvement work Warden Hospital

Warden completes hospital improvement work

13 Oct 2025

4

New planning rules for HMOs Chorley town hall

New planning rules for HMOs

13 Oct 2025

5

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin