Bad debts are a huge problem for many small businesses. In fact, according to recent research, more than 70 percent of small businesses have experienced late payment in the last 12 months; two-thirds had to write off their invoices with 20 percent saying they lost £5,000 or more. Eek! That’s a lot of money. If your business is affected there are a number of initial steps you can take to try and settle the matter legally which you may find surprisingly fruitful. But if all else fails and your customer still refuses to pay, your last resort is to apply to the courts for help using a ‘Form N1’.

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