Chasing unpaid invoices is exhausting. It’s not just the admin — it’s the headspace it eats up. When you’re waiting on money you’ve already earned, it leads to decision paralysis and unnecessary stress. Because cash flow is the lifeblood of a company, late payments are more than an annoyance; they are a threat to your stability.
But here’s the good news: those late payment penalties in your terms and conditions are legally enforceable debts. You aren’t “begging” for money; you are asserting a contractual right.
The Legal Foundation
In Ireland, penalties are enforceable under Freedom of Contract and the European Late Payment Directive. This legislation was designed specifically to protect small businesses from slow-paying customers by allowing you to charge interest and recovery costs.
Tactical Tools for Recovery
1. The Seven-Day Letter (Letter of Demand)
Think of this as a tactical warning shot. It shifts the tone from a friendly reminder to a formal notification of breach. Done correctly, it often prompts payment without the need for court because it signals you are prepared to follow through.
2. Retention of Title (ROT) Clauses
If you sell physical goods, a ROT clause ensures you retain ownership until you are paid in full. If a debtor wobbles financially, you may have a right to take your goods back rather than just joining a long queue of creditors.
Navigating the Courts
If a debtor still refuses to pay, picking the right court is vital for recovering your costs:
- District Court: Debts up to €15,000
- Circuit Court: €15,001 to €75,000
- High Court: Over €75,000
Once you have a judgment, the power dynamic changes entirely. You can use Garnishee orders, Sheriff enforcement, or even Publication of the judgment to ensure you get what you’re owed.
Don’t leave money on the table. Contact Neil Manley Solicitors today for a straightforward assessment of your debt recovery options.
In contentious business, a solicitor may not calculate fees as a percentage of any award or settlement.