Increases in late payments of invoices, dishonoured payments and post-dated cheques are all indicators that a debtor may be experiencing financial hardship or possibly headed for insolvency (if they are not there already).
Once a person or company is declared insolvent, their creditors must go through the process of proving their debt in the bankruptcy or liquidation, in order to recover any outstanding monies owed to them and typically only recover a fraction of what they were owed.
So what is a creditor to do? The first inclination of many is to quickly and aggressively recover whatever they …