It is inevitable that the economic disruption caused by coronavirus will have an impact on businesses’ cash flow. Collecting outstanding debts is likely to be even more challenging as a result, but doing this successfully will have a material impact for many businesses of all sizes.
Have a clear policy on what happens when an invoice is overdue and ensure all staff are aware of this. If a client has not paid after a certain amount of time you could consider whether to cease providing goods or services to them until payment has been made. If this does not elicit payment, this may be the stage when legal action is required to encourage payment. Don't leave it too long. Before court proceedings can be issued, the relevant pre-action protocol must be complied with giving debtors between 14 and 30 days depending on whether they are an individual or a business.