At Brittons Solicitors we are able to help with you will all debt recovery and insolvency matters and advise you on the best method of enforcement to avoid unnecessary costs and impact on your business. We pride ourselves on offering a fast and efficient business debt recovery in a transparent and professional manner.
There are three general routes of action open to you:
- Late Payment Demands – this is a letter claiming late payment interest and compensation. You can claim interest at 8% over Bank of England Base Rate and compensation of between £40-£100 for each unpaid invoice. This is a highly cost effective way of getting a contribution to your collection costs or even covering them completely. The majority of our clients are able to recover their debts simply by having us send out a late payment demand to show that they are serious about recovering their debs.
- Statutory Demands – this can be used for debts of £750 or more. We would generally recommend sending a seven-day letter (statutory demand) demanding payment together with a draft insolvency petition to show that you are serious as a precursor to formal a formal insolvency petition. This method is particularly appropriate where you have recorded promises of payment in writing and there has been no real response from the debtor.
- Letter with draft Insolvency Petition – it is possible to start insolvency proceedings agiangs a company or individual who has failed to respond to a statutory demand. It is important to use insolvency proceedings only when all other avenues have been pursued as the debtors bank accounts will be frozen and other creditors may support the petition and take it over delaying payment to you.