Numerous studies have shown the difficulties that businesses face when they aren’t paid the money they are owed – so it is no surprise that business owners often identify this issue as one of their main concerns.
The late payment of invoices is an increasing problem for UK businesses because it can cause issues with cash flow.
Late payment can be particularly crippling for small and medium-sized enterprises (SMEs).
In the most serious cases, the resulting problems with cash flow can even threaten the very survival of the business.
Cash flow issues continue to be one of the biggest causes for business failure within the UK. According to the Government’s accredited official statistics, one in 186 companies on the Companies House effective register entered insolvency between 1 November 2023 and 31 October 2024.
It is, therefore, vital that businesses collect the debts owed to them as soon as possible.
However, the collection and enforcement of debts is fraught with potential pitfalls.
Here’s how you can recover your debts and keep your business afloat.
Top tips for debt recovery
Many businesses avoid engaging a solicitor to chase book debts and overdue invoices because they do not want to get dragged into a costly legal dispute.
However, in many cases, a debtor simply needs to receive a letter from a solicitor to demonstrate to them that a business is serious about debt recovery.
Instructing a solicitor to draft and send a formal letter is an affordable option that will save you valuable time and effort that you would otherwise have expended on chasing undisputed invoices.
You can also contact your debtors directly to remind them of their legal obligations to pay. Such reminders can spur debtors into action, thus speeding up the process of debt recovery.
Debt recovery with Hethertons
At Hethertons, our Dispute Resolution team offers a practical and cost-effective debt recovery service.
Whether you are owed payment for goods or services, we will advise you on the options available and work with you and your business to decide the best course of action.
We can draft a formal letter to your debtor before claim to ensure compliance with the Practice Direction on Pre-Action Conduct.
If necessary, we will commence legal proceedings to help you recover your debt, working with you at every stage necessary.
Should your debt continue to be withheld, we’ll take action to enforce a judgment, including instructing a bailiff or High Court Enforcement Officer to recover payment of your debt.
If you’re struggling to recover your debt, you must seek legal advice quickly. Get in touch with our expert solicitors today.
