I had a thought on trying to limit my losses through bad debt, but I am concerned over the legality...no it doesn't involve a baseball bat...

My debt collector charges me 30% on collections they do. Nothing on those that are unsuccessful. If my business makes an average of 37% GP, I am still making a loss...

Can I create a line item on an invoice equal to 30% of the service/products? Say I call it a financing charge, or such. If the guy pays on time I credit that amount. If he doesn't, I am covered for the 30% that it is going to cost me to collect.

I know that this is going to play havoc with the reflection of my Net and Gross Profit, and there will be some VAT implications, but my main concern is the legality thereof...