Realising who your Customer is an Important part of Debt Recovery Bolton

When running a business it is important for one to be clear about all aspects of the transactions taking place. You should be clear on how much of your product is being sent to what client. You must also be clear on who owes you what amount. Most importantly, you must be aware of who your customer is. This is especially important when you are looking forward to debt recovery Bolton. If you do not know who owes you money you may not be able to effectively seek legal services as well. The following text contains more details.

The Most Common Types of Liabilities:-

When running a business you may come across the following types of liabilities:-

-         Sole Traders:-

o   This type of customer is actually an individual and not a company. Since this individual is the only owner if the business fails, they are themselves liable to pay losses to creditors. It is a good idea to carry out a personal credit check on them before proceeding with any further transactions.

-         Partnerships:-

o   Partnerships are also like sole traders; however, when bankrupt all partners are equally liable to pay debts in the event of debt recovery Bolton.

-         Limited Company:-

o   This company is to be treated as a separate legal entity. If the company ceases to trade then you may be left with a bad debt. The director or shareholder of the company may not be liable to pay the debt unless they signed a personal guarantee.

For more information regarding Debt Recovery Bolton you are more than welcome to get in touch with the experts at Adamsons Law by phone on 01204 221111 or email enquiries@adamsonslaw.co.uk.