The Debt Recovery Guide aims to arm small-business owners in the fight against late payments
National Road Transport Association (NatRoad) and Bristow Legal have together released a Debt Recovery Guide to help small trucking businesses overcome the increasing burden of late payments.
NatRoad points out that late payments have increased by 500 per cent, from an average of 15 days to 90 days, during the COVID-19 pandemic.
With legislation targeting late payments currently inadequate, this Debt Recovery Guide will assist small business owners navigate the often difficult and complicated process of recovering debt.
“Our members were struggling with payment problems long before the pandemic,” NatRoad CEO Warren Clark says.
“Members tell us that lengthy payment terms increase financial and administration costs, reduce the potential for growth and investment, and ultimately add to business uncertainty and failure.
“Cashflow is the single biggest reason for small businesses going under.”
Related article: Trucking and the late payment pandemic
The Debt Recovery Guide takes business owners through their options for recovering money owed to their business for goods or services provided to a customer, NatRoad explains.
It works through four phases, explaining the different options available to a business owner and the various actions they involve.
It also includes an example Letter of Demand to get business owners started in their debt recovery process.
“NatRoad maintains that greater intervention and legislation from government is needed regarding late payments,” Clark says.
“At law, the maximum payment time must be 30 days. Ensuring business owners have good cash-flow will help grow and strengthen the whole economy.”
The guide can be found here.