The effects of late or non-payment can have a disastrous impact upon companies. Sending of final demands and listing of bad payers can help recover any outstanding amounts.
The final demand letter is necessary before you can list a bad payer on any credit bureau. Sent to a non-payer, it notifies them of your intention to list them as a defaulter on a credit bureau. You can list a defaulter 28 days after the final demand letter was sent by post. A listing of a bad payer can include a company or individual who has broken the terms of the agreement in respect to the repayment conditions as set out therein.