Recovering unpaid business debts can be a daunting, time-consuming process, whether it’s from customers failing to pay their invoices or clients ignoring payment deadlines.
When cash flow is disrupted by overdue debts, it can have severe consequences, not just for the business’s financial health but also for its overall operations and morale.
If you’re struggling to recover a debt and are spending time and money following up with creditors, to no avail, a statutory demand can be a game-changer in debt recovery.
Chasing overdue debts can quickly become a drain on your time, energy, resources and job satisfaction.
The constant cycle of trying to recoup unpaid amounts can lead to staff burnout and a significant reduction in productivity. Moreover, this prolonged effort can harm client relationships, sometimes irreparably, further complicating your revenue generation.
A statutory demand can be an incredibly effective way to force payment from a debtor.
In simple terms, a statutory demand is a formal, legal document demanding that the debtor pay a specific amount of money within 21 days or face further legal action.
It sends a strong message to the debtor that non-payment will no longer be tolerated and that legal consequences are imminent. When drafted and served correctly, the debtor is legally compelled to pay or provide a valid defense against the claim.
If the debtor fails to respond to a statutory demand or dispute the debt, the creditor can apply to the court to initiate winding up proceedings in the Magistrate’s Court.
There is no room for error in executing a Statutory Demand and a supporting Affidavit.
The demand must be clear, properly drafted, and served in compliance with all relevant laws. If the statutory demand is not made according to legal requirements, it could be deemed invalid, potentially leading to delays, wasted time, and the additional cost of having to start the process over again.
The debtor has the right to dispute the demand and if a debt is in dispute then it could undermine your statutory demand.
While chasing overdue accounts may seem manageable at first, it can quickly drain time and resources, often to no relief to the company’s cashflow. By relying on experienced legal guidance, you can focus on what truly matters. Growing and managing your business.
Given the complexity of issuing a statutory demand, it’s essential to engage a legal expert who specialises in debt recovery.
A law firm will ensure that the statutory demand is properly drafted, served in compliance with all relevant laws, and backed by sound legal reasoning. Having a law firm in your corner can significantly increase the success rate of recovering the debt in a timely manner and in turn save you time and internal resources.
Leave it to the Experts. At Click and Collect, we handle the entire statutory demand process to maximise your chances of recovering your debt quickly and efficiently. We deliver practical solutions to clients and have a thriving debt recovery practice as a result.
Now that you know how the process works, it’s time to get started. Don’t let unpaid debts sit any longer - get started today, and we’ll handle the legal steps for you. With no win, no fee, there’s nothing to lose and everything to gain.
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