How to Recover Debts Effectively
Do you need help to recover a debt?
Do you or your business have a problem with late payers? We understand that bad debts can have a devastating effect on your cash flow. We have a streamlined procedure for the recovery of bad debts and have successfully recovered many hundreds of thousands of pounds for businesses from all sectors.
We have many repeat clients in Barnstaple and throughout North Devon where we are based, as well as all over the South West and beyond.
Our debt recovery system
We offer a low-cost fixed-fee service to all of our debt recovery clients. For a nominal administration charge of just £50 plus VAT, we will send a demand letter to your debtor.
If you want a solicitors' letter to be sent on your behalf, then we can help. This is how it works:
- After you have instructed us and provided us with a copy of the invoice you want to chase, we send a demand letter to the person who owes you money, demanding that they pay the sums owed to you within seven days.
- If your debtor pays up in response to our demand letter (and in our experience, around 90% of them do), you will not have to pay any further fees to us.
- If your debtor does not pay, you can either take no further action, (in which case you would pay us nothing further), or instruct us to take further action against the debtor.
What further action can be taken against a debtor who still won't pay?
If we have sent a demand letter, and your debtor has not paid, we can advise you about the further steps you can take to seek to recover your debt.
We will always discuss the costs, risks and benefits of your options with you at the outset, to allow you to make informed, commercial decisions about how you proceed. This will include an analysis of the funding options available to you, if you do not have the funds available to pay our fees yourself.
Can I charge interest on my unpaid debts?
We will advise you about the operation of your statutory rights when collecting debts, such as those under the Late Payment of Commercial Debts (Interest) Act 1998, which allows businesses to charge each other interest at 8% plus the Bank of England base rate, after an initial 30 day period has elapsed.
Many people do not know that you are also entitled to compensation arising out of late payment of debts, ranging from £40 for debts up to £999, to £100 for debts of £10,000 or more and we will advise you about how to claim this.
I have a judgment but my debtor still won't pay
Perhaps you have already obtained a Court judgment, but your debtor will still not pay. In these frustrating circumstances, we can advise you about the most appropriate method of debt recovery for you, such as placing a legal charge on property owned by the debtor and then seeking possession and sale of the property, intercepting money the debtor might be paying to a third party, or seizing goods belonging to the debtor, to the equivalent value of your judgment debt.
Our experienced dispute resolution team understand how important it is to secure payment of debts quickly and cost effectively, and so we will always consider flexible funding arrangements with you.
What shall I do next?
If your customers are not paying, and you need a solicitor to chase your bad debts quickly and cost effectively, we can help.
Contact us for your no obligation assessment of any debt recovery matter, and to discuss how we can assist you and your business.