Debt Recovery For Businesses
At Cocks Lloyd, we understand the critical importance of effective debt recovery in maintaining robust cash flow and ensuring you have the capital necessary to achieve your strategic objectives.
We have launched an innovative Debt Recovery System that offers a quick and affordable solution to recover your overdue invoices.
Powered by cutting-edge technology, our system enables users to create a profile and input all relevant details, including the debtor’s information, the amount owed, contact data, addresses, and any previous efforts made to collect the debt.
One of the main advantages of the system is that it consolidates everything into one platform. For instance, if you need to issue a Letter Before Action, it can be generated directly through the system. Once completed, the letter will be sent on our official letterhead the same day, provided instructions are received by 2 p.m. Furthermore, there’s no need to hire a separate solicitor for this process.
Register here to resolve your outstanding debts in a fast and cost-effective manner.
Our expert Business Debt Recovery Solicitors are also on hand to assist with more complex cases, including:
- Handling disputes.
- Recovering debt from insolvent entities.
- Compliance with the Pre-Action Protocol for Debt Recovery.
- Legal costs.
We are a diverse team with a multilingual staff, utilizing state-of-the-art tools to deliver modern, efficient debt recovery services. Askews Legal boasts extensive experience in complex debt recovery cases and has supported businesses of all sizes across the UK in their debt recovery efforts.
Here are some answers to common questions about debt recovery.
How can I collect debt from an insolvent business?
Recovering debt from an insolvent company can be tricky, especially if you’re unfamiliar with the legal process.
Our team of experienced Insolvency Solicitors will guide you through the process, helping you recover as much of the debt as possible.
If the outstanding amount exceeds £5,000 for individuals or sole traders or £10,000 for companies, you can serve a Statutory Demand. This step should be approached with caution, and professional advice is crucial since any disputes could lead to significant costs. All Statutory Demands created within our system are reviewed by a qualified expert before being issued.
A Statutory Demand serves as proof that the debtor is unable to pay, thus establishing their insolvency. If the debt remains unpaid after three weeks, you can move forward with bankruptcy or winding-up procedures depending on whether the debtor is an individual or a company.
There is a risk that the debtor may challenge the demand, which could result in an adverse costs order if they succeed. Our team will ensure you are protected throughout the process and provide the necessary legal support.
What should I do if the debtor disputes the debt?
In many cases, business debts are undisputed, stemming from clear agreements where one party provides goods or services, and the other owes payment in return. Written contracts typically leave little room for dispute.
However, if a dispute arises, our Dispute Resolution Solicitors can provide advice and representation. For uncontested debts, you can use our platform to issue a letter of claim or commence legal proceedings.
What interest can be charged on overdue invoices?
The Late Payment of Commercial Debts (Interest) Act 1998 was established to address late payments in commercial transactions across the UK. It allows suppliers to claim an interest rate of at least 8% per annum on overdue payments, as well as compensation and reasonable debt recovery costs.
Key points of the Act include:
- Suppliers are entitled to statutory interest of 8% above the Bank of England base rate on overdue payments.
- If no payment deadline is specified, interest begins accruing after a 30-day period.
- The supplier is entitled to a fixed compensation amount based on the size of the debt, in addition to interest.
- Suppliers also have a contractual right to recover reasonable costs associated with pursuing the debt, minus the fixed compensation.
Before taking any formal action, it’s always advisable to attempt a resolution informally by contacting the debtor directly. A simple phone call or email is often enough to prompt payment or arrange alternative payment terms.
Why Choose Us?
Cocks Lloyd Solicitors provides exceptional Debt Recovery For Businesses and Civil Litigation services to clients. People choose and recommend us not just in Nuneaton, Tamworth, Atherstone, Hinckley and Leicester, but across Warwickshire, Staffordshire, Leicestershire and the West Midlands, and the whole of the UK, because we get results.
To receive expert advice and representation regarding Debt Recovery For Businesses and Civil Litigation, please contact us using the form below, call us on (0247) 6641642, email via the Request a Callback form on this contact page.