Debt Recovery Services & Credit Control

Getting your debtors to pay their bills can be difficult and time consuming but it is a task all businesses have to confront at some points. For many companies, outstanding invoices are their biggest assets and overdue bills continue to be expensive to collect and a distraction.

Therefore using solicitors specialised in debt collection to carry out the unenviable task of chasing up certain customers is a favourable option. They have the time, expertise and resources needed and will get the job done quickly. Also, as this process often avoids court action, the customer may stay with the business and be more reliable in the future. Once a third party is involved it is often the case that debtors pay faster as the letters carry a lot of extra weight and are no longer an idle threat.

In some cases debts can be recovered simply by corresponding with the debtor. But if this is not the case then the legal team selected to deal with any unfortunate monetary problems will advise you about the range of options which are open to you and provide full support and efficient assistance at every stage of the debt collection process. The solicitors will deal with sending out initial letters of demand right through to potential court proceedings and enforcement action.

Once the company has requested these services they will be assured that debtors will be pursued vigorously and the debt is recovered as quickly and efficiently as possible. In some cases the debt recovery experts may recommend the service of a ‘Statutory Demand’ which will depend both upon the amount due and the nature of the debtor.

If the company is chasing a large debt over £5k and court action is necessary or the case is likely to be disputed and complicated then using a solicitor in this field is essential. However if a case is not contested and a court order is obtained then the lawyers specialised in debt recovery will advise on how the judgement may be enforced.

Overall the options of debt recovery go far beyond ‘sending in the Bailiff’ and solicitors in this field will consider all carefully. And even if this fails then insolvency proceedings can be pursued as a means of recovery.

A good credit control is important to manage customer purchases and debts, ensuring that the business has a healthy cash flow. If credit control is not managed sufficiently and debts outweigh the profits then insolvency is a major risk.

Therefore it is a good idea to seek legal advice as soon as your business starts getting into trouble. Typical warning signs are when you can not cover debts, a County Court summons arrives, staff wages can not be paid and there is an acute lack of working capital.

Solicitors will then offer advice on a wide range of techniques available to help a business through these testing times. As well as debt recovery these include factoring, selling assets, trimming the inventory, avoiding overtrading, billing promptly and renegotiating credit limits. Experts in this field will also advice a company on how to review overheads, efficiently identifying which costs need to be slashed and to what extent. This includes cutting excessive advertising, research and development, reducing the number of staff and the hours they work while, delaying new equipment or technological purchases and renegotiating contracts with suppliers.