A good, steady cash flow is a priority for any business. Left unchecked, a poor cash flow can threaten each stage of the route to market and impact badly on the overall profits. Recovering debt owed is vital for investing the maximum amount of money in business growth and ensuring that obligations are met – especially in economically straightened times. Debt recovery solicitors can help make sure that all outstanding debt is paid.
Having money tied up in unpaid bills is not something that most businesses can easily afford. If debts are left unpaid there are lots of issues which can arise, from slow cash flow to paying increased interest charges or problems with paying suppliers on time. This is why it’s vital to move swiftly by being prepared to issue legal proceedings if you have a debtor to chase.
Debt recovery solicitors
Simply.Law has a number of member solicitors who have extensive experience in all aspects of debt recovery and who will be able to recover money as quickly as possible at minimum cost. Simply.Law is a web-based platform, designed to connect experienced, high-end lawyers with those who need legal services. You can get in touch with any of the specialist debt recovery solicitors listed on this page. Or, if you prefer, you can send your details to Simply.Law and we will select the best lawyer for you, based on an assessment of your individual circumstances, through the Simply.Law Match function. Seeking legal assistance at the earliest opportunity is vital for quick recovery of unpaid debts.
How your debt recovery situation is approached depends upon a number of factors. These include the complexity of the case and whether it is straightforward or defended. Sometimes, you may not need anything more than a strongly worded letter before action, from a lawyer, for payment to be forthcoming. At other times you may need to pursue full litigation. Your chosen solicitor will help you identify which approach is the right one for you and your business.
Before you begin debt recovery proceedings it’s advisable to carry out a status check on the debtor to analyse whether pursuing the case is actually viable. This is normally done through a bankruptcy check or through a search with Companies House.
The four debt recovery stages
For commercial debt recovery there are four different stages:
- a letter before action
- issuing legal proceedings
- Judgment and enforcement
- Bankruptcy or winding up
If the letter before action doesn’t result in the debt being paid, then legal proceedings can be issued. If the claim is for less than £25,000 then it will be filed in the County Court. If it’s for more than£25,000 then it will be heard in the High Court. Once the motion is filed, a notice of issue will be sent to the defendant. They have 14 days from the date of ‘deemed service’ to respond. They can do this in one of three ways:
- Filing an admission
- Filing a defence (and counterclaim)
- Filing an Acknowledgement of Service
If the defendant fails to respond within 14 days, then the claimant can request judgment which could see full repayment of the debt, plus compensation. It’s important to do this quickly after the 14 days has expired to avoid the defendant being able to file a late defence. The amount of any compensation awarded depends upon the sum of the debt owed.
Simply.Law member lawyers for debt recovery have experience representing various clients, including for unsecured lending, purchasers and for both asset-based and invoice finance companies. The priority in any debt recovery situation is to act effectively and efficiently at a minimum cost. Your chosen solicitor will work flexibly with you on your specific needs and alongside your own incumbent business processes and strategies.
If you have customers who do not pay on time, or in full, then contact Simply.Law today for comprehensive debt recovery assistance to help ensure that you receive the payment that you’re owed.
