Need Help with Debt Recovery? Talk to First4Lawyers

With this in mind, you need someone you can rely on to arrange your business debt recovery easily and quickly.

Here at First4Lawyers, we have the expertise to help recover money owed to you by using all the tools the law provides.

Is it always worth pursuing overdue debts?

When customers and clients refuse to pay you for goods or services you provide, the act of recovering debt can be both costly and time consuming.

But it's important to be sure that you have a realistic chance of recovering a debt, before you go through all that effort and expense.

It may be sensible to write off small debts of less than £100. However, you may need to consider whether this would encourage other small debtors not to pay in future.

For larger debts, your first step is to find out why the customer has not paid yet. It may be that they’ve simply forgotten to make a payment. 

If you are facing a dispute over a service or goods you supply on a regular basis, it becomes harder to recover the debt without first resolving any issues.

If the customer has cash flow problems, it may be wise to reschedule the debt and negotiate part payment in instalments. While this may not be ideal, part payment is certainly better than no payment.

If the customer or client already has outstanding county court judgments against them, it is likely that you’ll find it harder to recover the debt. You may wish to check the Register of County Court Judgments before pursuing payment.

Can I charge interest on overdue debts?

You may use the contract between you and a client to specify a credit period and to state how you will charge interest on overdue payments. You must include terms in line with the Late Payment of Commercial Debts (Interest) Act 1998.

Where there are no terms relating to credit in the contract, the law allows you to charge interest at a set rate. This is the Bank of England base rate (fixed every six months) plus 8% from the end of a notional 30 day credit period (this is usually the date of your invoice).

How can First4Lawyers help with debt recovery?

Using a commercial solicitor to recover debts can save you time and money. Our solicitors are experienced specialists who do this kind of work routinely. 

You may find that having legal weight behind you means customers are quicker to pay up – either in full or by instalments – when faced with the threat of legal action.

We can also help you to try and find a resolution out of court, resolving any debt in an amicable manner with an out-of-court settlement.

I want to take legal action to recover debts – where do I start?

The specialists you gain access to with First4Lawyers are skilled at helping to recover debts. If you are concerned about how your relationship with a client might be affected by involving solicitors, know that we can act with the utmost care and diplomacy.

Our legal advisors offer a free review of your requirements and can call you at a time that suits you. Just get in touch and we'll take it from there.