Quick answer
The most damaging mistakes are acting before the claim is reconciled, pursuing the wrong legal person, overstating interest or fees, destroying context in electronic evidence, and ignoring a genuine performance dispute. A business can also prejudice its position by allowing prescription to run, treating negotiation as a pause on court process, or signing a payment arrangement that unintentionally changes rights.
How to use this guide
Pressure does not replace proof. Avoid public shaming, casual liquidation threats, invented criminal consequences, unauthorised repossession and service cut-offs that amount to self-help. A firm but accurate demand supported by the contract and performance record is more effective than language the business cannot lawfully carry out.
Do not treat the invoice as complete proof
An invoice shows what the supplier billed; it may not prove that the customer agreed to the price, that the person who ordered had authority, or that performance met the contract. Keep the accepted quote, purchase order, terms, delivery evidence and complaint history. If the service was partly defective, calculate the claim after credits, remedial work and any defensible set-off rather than demanding the gross ledger balance.
Do not quietly remove emails that record scope changes or dissatisfaction. A lawyer needs adverse material to assess litigation risk. Presenting a selectively cleaned thread can undermine credibility if the full conversation later appears in disclosure or evidence.
Do not pursue a convenient but incorrect debtor
A trading name is not always the legal entity that contracted. Verify registered names, numbers and the party shown in the ordering and payment history. Directors and shareholders are not automatically liable for company debts, and copying them into a demand does not create a suretyship.
Where a claim was ceded or factored, identify the current creditor and authority to collect. Combining invoices across related companies or sending one demand to every member of a corporate group may create confusion about standing and amount.
Avoid unsupported interest and collection additions
Read the interest and cost clause before adding amounts. The Prescribed Rate of Interest Act may operate where another law, agreement or custom does not govern, and judgment or unliquidated-debt rules can differ. Do not quote a remembered statutory percentage, compound interest automatically or add legal and collection fees that have not been incurred or authorised.
Give the debtor a statement showing principal, payments, credits and each additional amount. An unexplained figure invites dispute and makes settlement harder. If tax treatment affects the ledger, obtain accounting advice rather than using tax language as leverage.
Do not guess at prescription or notices
Many ordinary debts use a three-year residual prescription period, but the Act also contains other periods and qualifications. The correct start is tied to the debt becoming due, not necessarily the invoice date. Acknowledgements and service of qualifying process can have statutory effects; another demand is not a universal reset button.
Where the claim is for payment of damages against a qualifying organ of state and falls within Act 40 of 2002's defined “debt”, failing to consider its six-month notice framework can create an additional obstacle. An ordinary invoice-price claim does not enter that regime merely because the customer is public or state-linked, so scope must be checked before treating the statute as applicable.
Avoid procedural shortcuts and empty threats
Negotiations do not automatically suspend summons deadlines or prevent default judgment. A late defence or rescission may be possible in some circumstances, but neither should be treated as guaranteed. Keep court procedure separate from the commercial conversation and file what the current rule requires.
Liquidation should not be threatened as ordinary collection where the debt is genuinely disputed. Small Claims Court is also not a universal low-cost option: juristic persons cannot institute claims there. Verify forum, jurisdiction and claimant eligibility before promising a quick route.
Protect evidence and personal information
Export electronic communications in a way that preserves date, participants, attachments and thread context. A screenshot is not automatically conclusive merely because it is digital. Keep originals secure and record how a copy was obtained.
Do not post the debtor's name, identity information or alleged balance online to induce payment. Handle customer and contact data for a lawful, relevant collection purpose and limit distribution. Aggressive exposure can create privacy, reputational and commercial risk without improving the merits.
Mistakes checklist
- Demanding the unreconciled gross balance after credits or returns
- Naming a director personally without a valid liability basis
- Deleting complaints, variations or inconvenient messages
- Adding interest, fees or costs without a traceable legal foundation
- Assuming a demand interrupts prescription or that settlement discussions stop litigation
- Threatening insolvency, criminal action or self-help without lawful grounds
- Treating a company as eligible to institute a Small Claims Court claim
- Publishing debtor information to pressure payment
Safer questions before action
- Which documents prove contract, authority and completed performance?
- What is the correct net principal after every credit and payment?
- Has the debtor raised a defence that should change the response?
- Which date and event control prescription on this claim?
- What remedy and forum fit the evidence without exaggerated threats?
- How can evidence and personal information be preserved lawfully?
Important limitation
This article identifies general risks and is not legal advice on a collection strategy. Contract terms, evidence, prescription, privacy duties, court rules and the debtor's legal status require individual analysis. Do not delay a live response deadline while correcting the business file.
FAQs
May I demand from a company director personally?
Only where a valid legal basis such as a suretyship exists; company status alone does not create personal liability.
Can I publish the debtor’s name to obtain payment?
That can create privacy and other risk. Use debtor information lawfully and proportionately rather than as public pressure.
Does a screenshot automatically prove the agreement?
No. Electronic evidence can be used, but origin, completeness, integrity and context still affect its weight.
Can I add all collection fees to the balance?
Not automatically. Each addition needs a contractual or statutory basis and a transparent calculation.
Related Lexuno paths
Related articles
Source notes
- Prescription Act 68 of 1969
- Magistrates’ Courts Act 32 of 1944
- Rules Regulating the Conduct of the Proceedings of the Magistrates’ Courts of South Africa
- Rules Board Government Gazette Notices
- Electronic Communications and Transactions Act 25 of 2002
- Prescribed Rate of Interest Act 55 of 1975
- Small Claims Courts Act 61 of 1984
- Institution of Legal Proceedings against Certain Organs of State Act 40 of 2002
- Protection of Personal Information Act 4 of 2013
- Companies Act 71 of 2008
- General Law Amendment Act 50 of 1956
- Freshvest Investments (Pty) Ltd v Marabeng (Pty) Ltd (1030/2015) [2016] ZASCA 168
Legal note
This article is general legal information for South African readers. It is not legal advice. Speak to a qualified legal professional about your specific facts before taking action.