Debt recovery services

Are you or your business suffering cash flow problems due to unpaid commercial debts? Do you need to recover the money to stay in business?

Last year we recovered over £1 Million for small and medium sized enterprises (SMEs) in unpaid debts.

Pearson Solicitors' Debt Recovery team can help you recover money owed to you speedily and cost efficiently – enabling you to improve cash flow, reduce debt levels and free up valuable time to concentrate on your business.

Our specialist debt recovery solicitors have experience collecting outstanding commercial debts for all size and types of businesses, from sole traders to Plcs. 


Don’t let debts undermine your business – take action 

The pressure of running a business can mount when there's not enough cash coming in and your bills are piling up. For some businesses, just one outstanding debt can cause huge cash flow problems.

If you are concerned about your cash flow and outstanding debts, our key guidance is to "take action"! Don't just ignore the problems and hope they resolve themselves: the chances are they will not!

It's true that payments might just come in tomorrow or next week but, in our experience, the sooner you act, the more chance you have of recovering payment or sorting out your debts satisfactorily. Don't spend valuable business development time worrying about the finances.

We can advise you on the most appropriate step to take next. Contact Christopher Burke or make an enquiry to find out how we can help.

What action can you take if you are owed money? 

Our debt recovery team has years of experience in advising businesses on how best to handle debt recovery. Most debts only require a couple of straightforward processes to prompt payment. For example, we can:

  • write a "letter before action" on your behalf to the debtor; or
  • if the letter before action does not result in payment, we can start court proceedings in the Small Claims Court; or, alternatively,
  • in some cases, where the debtor is unable to pay their debts as they fall due, we could start winding up proceedings or bankruptcy proceedings (as appropriate). 

Our debt recovery service 

Our debt recovery team uses a proven combination of letters, telephone calls, court proceedings and common sense to recover payment from your debtors. As a client you can trust us to act in your best interests leaving you to get on with running your business.

In many cases, a solicitor's "letter before action" to the debtor, will bring about immediate payment. If however, a debt becomes contested, our experienced and qualified litigators can advise you on the various options available. Whatever your chosen course of action, we will advise you beforehand in order to pursue the most commercially sensible route.

We provide advice and updates at each stage of the debt recovery process including:

  • Tracing debtors / credit searches
  • All activities prior to the issue of court proceedings including a letter before action
  • Court proceedings
  • Enforcement
  • Winding up or bankruptcy petitions

Is the debt disputed or is the debtor an important client? 

Debt recovery can also give rise to more difficult issues. For example:

  • the debtor might dispute that all or any of the payment is due; 
  • the debtor might be complaining about the quality of the goods or services you have supplied; or,
  • you might not feel able to take action say, for example, if the debtor is a personal friend or an important customer you don't want to irritate.

Whatever your position, we can help you devise a suitable strategy to get your invoices paid.

How can we help? 

We help our clients to achieve their business and commercial objectives by providing powerful, effective and practical legal advice. Our aim is to ensure our legal services are proactive and well managed.

Whatever your position, we can help you to reach an agreement or compromise to deal with your debts. We are used to dealing with complex, high value or defended debts, and can offer advice tailored to your particular situation and business needs.

Are you in debt? What action can you take? 

 

  • If you have received goods or services from another business (the creditor) but not paid for them within the agreed time, it is important for you - as the debtor - to act as soon as possible. Failure to do so could, ultimately, result in the creditor issuing court proceedings or even, if you can’t pay your debts as they fall due, applying to make you or your business insolvent for example by issuing a winding up petition.
  • Ignoring the creditor will only make your situation worse. Acknowledge their requests for payment. Find out if they will extend the time for payment or accept payment from you in stages.
  • If the goods and services you have received are defective or sub-standard in some way, explain that to the creditor: you might be able to negotiate a reduction on the amount you owe.
  • If you cannot agree payment or a compromise arrangement on the debt, get in touch with us and we will discuss your options. 

 

Note: if you leave debts to accumulate, you risk insolvency. You can read more here: Dealing with the threat of insolvency: some tips on how to avoid insolvency.

Contact us

To recover or seek advice about debts, get in touch now by completing the online enquiry form.

Alternatively, call us on 0161 785 3500 or email enquiries@pearsonlegal.co.uk.

 

Updated 23 June 2017

 

 

Latest Blog

Latest News

Letting Agency Fined for Breaches of Consumer Rights Legislation

Professionals who deal directly with the public are subject to a battery of consumer protection rules and failing to comply with them can be costly, both in financial and reputational terms. In one case, a letting agency that neglected to display a list of...

Banter Doesn't Create a Contract

The trouble with light-hearted discussions of important business matters in a social context is that none of those present can really be sure whether any agreements apparently reached are serious or merely a joke. Exactly that happened in one case in which...

Company Credit Status Must Stand Alone

You may think that if people of substance are behind a business you have a dispute with, this acts as a source of comfort that any sum you are awarded against the company is likely to be met, but that is not necessarily the case, as a recent dispute shows. ...

Government Makes Tendering Process Easier

The complexity and length of the tendering process for government contracts has for many years operated as a significant deterrent for small businesses that might otherwise wish to compete for lucrative public sector contracts. Recognising this issue, the...

Breach of Contract - Court Takes Commercial Approach

Making the right decisions in the immediate aftermath of a breach of contract is of critical importance and, at such knife-edge moments, legal advice is essential. That point could hardly have been more clearly made than by a High Court case concerning an...