Small Businesses and Debt Collection

Small Businesses and Debt Collection

Following research by Bacs Payment Schemes Limited it has emerged that more than three quarters of small to medium sized enterprises are waiting more than a month beyond their agreed terms to be paid with more than a third waiting over two months.

It seems almost impossible to walk down a high street or read the local newspaper without seeing the impact of the struggle being faced by small businesses. With over 27,000 business in the UK closing down between 2017 and 2018 (Federation of Small Businesses) the importance of small business recovering debts quickly, for a low cost and in line with the Pre-Action Protocol for Debt Claims is paramount.

The practices of payday lender Wonga have been highly criticised in the press recently following their collapse. These practices included forging letters as if they were from law firms requesting debt payment and threatening legal action. It is important that in chasing payment the small business correctly determines the date in which a payment can be considered late as per terms on invoices or agreements with clients, remain professional when speaking or writing to the debtor and only issuing Court Proceedings where other options have been exhausted.

To avoid sanctions being placed on your business by the Court you must ensure that you comply with Pre-Action Protocol for Debt Claims. This applies to all businesses including sole traders where the debt is owed by an individual and describes the conduct the Court expects in the lead up to commencing legal proceedings.

Clapham & Collinge have a dedicated team of experts who are able to provide you with all of the necessary information, support and legal advice. We are able to offer debt collection services on a one off basis or as a repeat relationship with your business. Our services range from Letters Before Action, Issuing Proceedings, applying for Default Judgment and applying for a range of enforcement options including Attachment of Earnings Order and Charging Orders.

To find out more or discuss your individual requirements in further detail, our specialist Debt Recovery team can help. Our advice is bespoke, confidential and totally designed around you, helping you come to the best conclusion for both you and your business. Contact us today on 01603 693500 or email us using the 'Make an enquiry' form. Appointments available at our Norwich, North Walsham, and Sheringham offices.

*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.