A new debt recovery protocol that is due to come into force soon will have important implications for companies that deal with sole traders.
The Pre Action Protocol for Debt Claims, which comes into force on 1 October, 2017, seeks to protect individuals from overbearing debt enforcement by businesses.
However, it also covers sole traders, and because of the way the protocol will work, small businesses could find unscrupulous sole traders playing the system to stall on paying up.
Speaking to Hotel Owner, however Senior Associate and Chartered Legal Executive in Debt Recovery Ally Tow says there are steps that firms can take to protect themselves from lengthy wrangles.
Ally stresses in fact that while the new rules do have the capacity to cause a real headache for companies that are unprepared, that businesses which tighten up their contractual terms and credit control procedures should not face problems.
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