As a firm, we have a Debt Recovery Department to deal with straightforward debt claims for those sums due under an invoice on a fixed fee or percentage of recovery basis.
We act for a number of companies and for individuals who have debts that need to be collected. Over many years of practice, I have worked out the best ways to ensure the best returns, which are as follows:
- Never leave a debt for over 6 months old, the chance of collecting it diminishes rapidly. Even now customers/clients will have had money in from the government to pay you.
- Always make provision in your contract to charge interest on all amounts that are not paid within 30 days.
- For a company, if the amount due is over £750 you can issue a Statutory Demand and then can wind the company up (not at the present time unless it’s a pre-COVID debt and the debtor’s business has not been affected by COVID).
- For an individual it has to be over £5,000 for you to issue a Statutory Demand and then you can apply to make them bankrupt.
- Have a series of chaser letters to use for all outstanding invoices: –
- Have you overlooked our invoice? (1st letter)
- This invoice is now overdue for payment. Please make payment by return. (2nd letter)
- Should we not receive payment from you within the next 7 days, we shall be issuing proceedings/serving a Statutory Demand. (3rd and final letter)
- For individuals who owe a corporate debt don’t forget the Pre-action Protocol for Debt Recovery.
- Issue a claim as soon as the last letter expires.
- Always keep a record of the name and status of your debtor, including whether it is a limited company, a sole trader, a partnership or otherwise.
Just remember to apply as much pressure as possible quickly, as he who acts first usually gets paid.
For further information, please contact Richard Dobson Mason at firstname.lastname@example.org at our Grasscroft office.