Protecting cash flow is vital for the survival of any business and pursuing unpaid debts to your company is frustrating and time consuming. An unpaid bill can very quickly become an irrecoverable debt unless help is sought. Asset recovery is a process that requires flexibility and persistence without damaging your relationship with your customer.
The first step is to send a solicitor’s letter to your debtor accompanied by a statement of account showing the sum due. If the debtor is a limited company and the debt exceeds £750.00 and is not disputed, it would be in order to threaten winding up proceedings. The letter is then followed by a telephone call to the debtor on your behalf, allowing us to verify that the debtor is still trading, the current address , and whether the debt is disputed.
Michelle Hayter, Dispute Resolution Solicitor, says “Court proceedings should be the last resort in reclaiming debt – very often threatening legal action is enough to obtain payment and negotiations with the opposing party must have taken place before court action.” Dispute resolution – mediation or arbitration – using an independent third party as mediator, is a way to control costs and avoid confrontational proceedings. In some instances it may be beneficial to allow a loss in order to retain a valuable customer or it may be appropriate to consider taking back goods or services.
For a free initial meeting please call 01202 499255 and Michelle or a member of his team will be happy to discuss any questions you may have.