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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.
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
- 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.
Recent articles and tips on debts, debt recovery, County Court judgments (CCJs) and enforcement
- Are your business debts getting out of hand? Read our tips on avoiding insolvency
- Has someone served a court, claim form document on you?
- Dealing with court claims or County Court Judgments (CCJs)
- A checklist to help you deal with County Court Judgments CCJs
- How to enforce a CCJ
- Insolvency proceedings
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 firstname.lastname@example.org.
Updated 23 June 2017