Debt Recovery Solicitors
According to the Federation of Small Businesses, one in three payments due to SMEs is paid late!
Roughly £26bn in total is owed to UK businesses and 50,000 are forced out of business each year as a result. So, late payments are not just an annoyance that you might have to deal with as a business owner – they can be critical to your survival.
Research in 2017 by Fintech company Ormsby Street, found that two thirds of letters of claim sent by Solicitors resulted in invoices being paid within seven days. By contrast, if no such letter is sent, two thirds of overdue invoices will remain unpaid after one month.
We offer a fixed fee debt recovery service for business of all sizes. Our bespoke service is designed to maximise debt recovery in the quickest time, sometimes all it takes is a formal letter for the matter to be resolved.
Key Stages In Debt Recovery
Letter Before Action. A Letter Before Action should set out what is owed and should state how long the debtor has to clear the debt before further action is taken. This is a formal letter that shows intent to take steps to escalate if the debt is not paid promptly.
Issuing proceedings. If the Letter Before Action is not replied to, or the response is not satisfactory, then the next step is to issue proceedings with the County Court. Once this is under way, the debtor will receive communication giving them 14 days to settle the debt and pay costs and interest.
County Court Judgment (CCJ). If the debt is not paid then the court will record a CCJ that shows the debtor has defaulted. This creates the power to take enforcement action against the debtor and will be recorded on the debtor’s credit file.
Enforcement. Once a CCJ has been created then enforcement action can be taken against the debtor. The most appropriate option for enforcement is often a Bailiff or High Court Enforcement Officer – you should not go and attempt to seize goods or collect the debt yourself. The enforcement stage will usually involve either collecting the debt on the doorstep, taking away non-essential possessions to the value of the debt owed, or taking control of those items until the debt is paid.
Don't let bad debt break your business. For a no obligation discussion contact our specialist debt recovery Solicitors on 01282 695400 or complete the form below and we’ll call you back.
