10 tips for avoiding bad debts

At Streets Dyke Ruscoe we can help businesses in the Shropshire area with cash flow and avoiding bad debts. Here are some tips…

Bad debtors can be very dangerous for new and expanding businesses, having a damaging impact on cash flow.

Here are 10 tips for avoiding bad debts:

  1. Obtain a credit reference on the organisation that you intend to trade with
  2. Avoid doing business with companies whose credit rating is poor
  3. Ensure that the other company knows your payment terms at the outset
  4. Invoice at the earliest opportunity
  5. State the payment terms clearly on your invoice
  6. If payment is not received by the due date, send a reminder as soon as possible, and certainly no longer than one week after the due date. It is good practice to have a policy to chase the debt after a fixed number of days following the due date
  7. If there is still no response, chase up the debt by telephone. This will enable you to determine whether there are any queries on the invoice and, if not, to discuss a date for the settlement
  8. Write to confirm the agreed settlement date and send by fax or post
  9. State clearly that the matter will be referred (after the agreed extended period) to either:
    • A debt collection agency
    • A firm of solicitors, or
    • The county court small claims department
  10. If the debt is still due after this, keep your word and take action

If you are in the Shropshire area and would like help with cash flow and avoiding bad debts, contact Streets Dyke Ruscoe.

Try our site search

Quickbooks pro-advisor Sage Bookkeeper Sage Accountant Xero Bronze Partner ACCA

Site information

© 2025 Streets Dyke Ruscoe. All rights reserved.

Streets Dyke Ruscoe is a trading name for Streets Dyke Ruscoe Limited, registered in England and Wales, registered office address Tower House, Lucy Tower Street, Lincoln LN1 1XW, company number 05487779.

Home Contact us Accessibility Attribution Disclaimer Privacy Help Site map

Ludlow office

Streets Dyke Ruscoe
110 Corve Street
Ludlow
Shropshire
SY8 1DJ

Contact details

Tel: 01584 872421

Tenbury Wells office

Streets Dyke Ruscoe
38 Teme Street
Tenbury Wells
Worcestershire
WR15 8AA

Contact details

Tel: 01584 810322

Craven Arms office

Streets Dyke Ruscoe
Corvedale Chambers
Corvedale Rd
Craven Arms
Shropshire
SY7 9NE

Contact details

Tel: 01588 672776