Payment by way of post-dated cheques should only be acceptable if the payment period is tolerable to you.

However, payment by post-dated cheques is often an indication your customer is in financial difficulty. Your attitude to their acceptance will depend upon the amount due to your company and the importance of your being paid. Indeed for larger amounts the offer of post-dated cheques can often ring alarm bells eliciting peremptory instructions to third parties to recover payment. If, indeed, you discover court action has been instituted or judgments issued against your customer you may wish to instruct fast track insolvency proceedings rather than waiting for the legal process to take its course.

Click here to go to fast track recoveries.

For the avoidance of any doubt you have no obligation to accept post-dated cheques unless this was a condition of the contract entered into with your customer.