H1Debt Collection Factsh1pnbsp;ppispanThis Article Isintended To Be A Brief General Guide Only And Should Not Be Used Or Relied Onas Spaniispana Complete Or Authoritativesource Of Legal Information.spaniph2INSOLVENCY? PROCEDURESh2pThe Insolvency Procedures Open To A Creditor Are A Powerfultool In Recovering Debts.? Whether The Debtor Is A Company Or An Individual, Anintelligent Application Of The Insolvency Rules Can Enable A Creditor To Obtainpayment Of Their Debts Without The Need For Protracted And Costly Litigation.ppnbsp;ppThe Insolvency Rules Can Be Used For A Broad Range Of Debtsexceeding L750 Provided That The Debt Is Not Genuinely Disputed By The Debtor.?Insolvency Procedures However Can Be A High Risk Strategy And One Needs To Bevery Careful In Using These Procedures. There Are Substantial Adverse Costconsequences Where The Procedure Is Incorrectly Used.? Ppnbsp;ph2GUARANTEEh2pIt Is Often The Case That Debts That Are Difficult Tocollect From The Debtor Company Are As A Result Of Inadequate Checks Being Madeas To The Financial Strength Of The Company When The Contract Was Enteredinto.? It Is Therefore Essential That You Should Check The Credit Rating Of Anypotential New Customer Or Client And Where There Is Concern As To The Abilityof The Company To Make Payment For Goods Or Services Supplied, Then You Shouldobtain A Guarantee Either From A Parent Company Of Sufficient Financialstanding Or An Individual To Ensure Performance Of The Contract. Ppbnbsp;bppIt Is Essential That Any Guarantee Is Documented In Writingand Clearly Places The Guarantor Under A Binding And Contractual Obligation Tomeet The Liabilities Of The Company Or Individual If They Default In Meetingtheir Contractual Obligations.? It Is Essential That The Wording Of Theguarantee Is Well Drafted As The Courts Tend To Construe The Terms Of Aguarantee Strictly And Will Only Find That There Is A Third Party Liability Ifit Is Quite Clear From The Wording Of The Guarantee.? Ppnbsp;ph2INTERESTh2pWhere A Debtor Has Failed To Pay You Monies For Goods Orservices Supplied, It Is Normal To Charge Interest For Late Payment.? Interestcan Be Charged Either In Accordance With Your Terms And Conditions Of Businessprovided Your Terms Make Provision For This Or, Alternatively, You Can Applythe Late Payment Of Commercial Debts (Interest) Act 1998 Which Allows You Toclaim Interest On Overdue Accounts.? If The Contract With The Debtor Predates7th August 2002, Then Businesses That Are Eligible To Charge Interest Can Do Soat A Rate Of 8 Above The Bank Of England Base Rate That Was In Place On Theday The Debt Became Overdue. For Contracts Dated On Or After 7th August 2002,all Businesses Can Charge Interest At A Rate Of 8 Above The Late Paymentreference Rate. BrbrThe Bank Of England Base Rate On 31 December, Is The Quot;reference Ratequot;for Debts Becoming Overdue Between 1st January To 30th June Each Year. BrThe Bank Of England Base Rate On 30 June, Is The Quot;reference Ratequot; Fordebts Becoming Overdue Between 1st July To 31st December Each Year.ppbnbsp;bph2RETENTION? OF? TITLEh2pA Well Drafted Set Of Terms And Conditions Of Business Willinclude A Retention Of Title Clause.? The Effect Of Such A Clause Enables Aseller Of Goods To Retain Ownership Of The Goods Supplied Until Payment Hasbeen Received In Full.? This Can Be Of Great Value Where The Purchaser Of Thegoods Supplied Becomes Insolvent.ppnbsp;ppThere Are Various Types Of Retention Of Title Clauses Butthe Essence Of A Well Drafted Clause Means That A Seller Will Have Addedprotection In The Event Of Failure By The Purchaser To Comply With Theircontractual Obligations And Pay For The Goods Ordered.? In Particular Where Abuyer Subsequently Goes Into Liquidation After Acquiring Stock Which Is Subjectto A Retention Of Title Clause, Then The Seller Of The Goods May Be Able Toobtain The Return Of The Goods Notwithstanding The Fact That The Buyer Has Goneinto Liquidation.ppnbsp;ppA Carefully Drafted Retention Of Title Clause Is A Powerfultool To Assert Ownership Rights And Recover Property.? They Can However Becomplicated And Need Careful Consideration.ppnbsp;ph2TERMS? AND? CONDITIONS? OF? BUSINESSh2pOne Of The Major Reasons That Clients Have Difficulty Inrecovering Their Debts Is Because They Either Have Inadequate Terms Andconditions Of Business Or They In Fact Fail To Have Any Written Terms Andconditions Of Business.? Ppnbsp;ppAlthough Terms And Conditions Will Vary From One Business Toanother And From One Industry To Another, Certain Key Areas Are Common To Allbusinesses And Need To Be Addressed In Your Terms And Conditions.? Your Termsand Conditions Should :-ppnbsp;pp- Ensure That The Customer Or Client's Details Are Correctly Shown.pp- Make Clear Whether You Are Dealing With An Individual, Apartnership Or A Limited Company.pp- Set Out What Services Or Goods You Will Be Supplying.pp- Clarify When Payment Is Due.pp- Make Provisions To Protect You If For Good Reason You Are Unableto Supply The Goods Or Services Or Only Part Deliver The Goods Or Services Orif Faulty Goods Or Inadequate Services Are Provided.pp- Ensure That You Retain Ownership Of Goods Until Payment In Fullis Received.pp- Make Clear Any Additional Charges That May Be Payable If Thecustomer Or Client Fails To Pay In Accordance With The Payment Terms.? Inparticular The Right To Claim Interest And The Right To Claim For Collectioncosts And Solicitor's Fees Should Be Clearly Set Out In The Terms And Conditions.pp- Ensure You Comply With All Statutoryrequirements.???????????????????????????????????? Ppnbsp;ppA Well Drafted Set Of Terms Andconditions Will Make Collection Of A Debt Substantially Easier.p
