A new debt collection protocol takes effect from 1 Oct 2017 that could disrupt and delay the collection process for businesses owed money by sole traders in default.
The new rules highlight the additional risk that single invoice finance companies, such as Cash for Invoices Limited, will now be exposed to when the debtor in default is a sole trader.
Law firm Hill Dickinson says
" Small and medium sized businesses in particular, with concerns about potential cash flow problems, will have to either reflect on when and to whom they give credit and to ensure that they act promptly when debts arise. " See also this commentary.
What is single invoice finance?
Cash for Invoices Limited offers single invoice finance (sometimes called spot factoring or selective invoice finance) - a type of debt factoring that has key advantages over conventional debt factoring and invoice finance: