Non or late paying customers are unfortunately a fact of life for most small to medium businesses. While at best delayed payments can be annoying, at worst they will have a measurable and detrimental impact on the smooth running of your business.

Recent figures via the Official Statutory Register of Judgments has given an insight into the potential scale of the problems around business debts and disputes that have been escalated to the courts.

The data shows that in the second quarter of 2025, there were over 45,000 County Court Judgments (CCJs) issued against businesses. Just over a quarter of the unsatisfied commercial judgments in England and Wales were for amounts greater than £3,000,

While there are fixed fee debt recovery services available to deal with most size B2B debts, needless to say it's more important than ever to make sure you have effective procedures in place for protecting cash flow in your business.

So, we wanted to share some tips for handling non-paying customers that we've provided to our clients after helping them recover business debts owed to them.​

Is sounds simple, but make sure you know who you are doing business with.

Try to find out the size of the organisation and whether they are a partnership, sole-trader, limited company or PLC. ​What is their full legal name and do they use any trading names? Conducting a quick Internet search for these names may reveal information you need to be aware of.
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Make use of public services such as Companies House to verify your private limited company customers.

When first considering doing business with them, verify their registered office, company number and trading status. You can use this information to find who owns the business and verify that the person instructing you has the authority to do so on behalf of them.

​Then throughout your relationship put a reminder in to recheck these details periodically. That way you can be alert to any warning signs such as overdue accounts, charges being registered against them or large drops in cash reserves which may indicate their business is struggling.
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Check if your business customer is part of the Government's Fair Payment Code (FPC) which encourages businesses across the UK to pay fairly and quickly, within 30 or 60 days. The current awardees can be found on the FPC website.
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Whenever possible try to request payment in advance. If this is not possible, attempt to secure partial payment (for materials etc.) or some kind of deposit.

With some larger business customers it can take a while for a new supplier to get onto their accounts systems. So starting this process as soon as possible can speed up future payments.

Invoice as soon as the order is completed, or on lengthy jobs gain agreement to do so at periodic intervals. Knowing there is a payment problem half way through a job is better than finding out at the end.
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Include standard payment terms within your T&Cs and on your invoices, ensuring they are clear and reasonable.

​Make customers aware of these terms before they order, when you provide a quote and when an invoice is at risk of becoming overdue. Your invoice should also include details on how to pay you, such as your bank account or online payment information.
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For large or regular transactions consider getting a specific contract drawn up and signed by both parties. At the very least ensure the main points of the order or transaction are in writing with evidence that it has been agreed by each party.

​If you ever end up having to consider legal action, good record keeping will pay dividends.

​Everything from the original order, proof of delivery and late payment chases should be kept. Your solicitor will want written evidence and a chronology of events to proceed with a claim, so keep copies of any emails and notes of any telephone calls.
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Implementing the above tips may help in reducing the chances and impact of late paying business customers. But even with the most vigilant owner, on-the-ball accounts team and strictest terms and conditions, you will still encounter customers that simply choose not to pay.

So your next step is to consider formal legal action to recover the amount owed, which usually starts with sending a Debt Recovery Letter Before Action.
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Having robust Terms & Conditions, a consistent approach to invoicing, and a clear paper trail will help you get what's owed to you that much quicker and assist your legal claim should you ever need to get a solicitor involved.

When a friend asks to borrow money it can be difficult to refuse. We don't think twice about saying no or hanging up on telemarketers that want us to part with our money, however when it's someone familiar that is asking, your usual good judgement can quickly disappear.

But if after you have given the loan, your trusted friend disappears just as quickly or repeatedly says they are broke, then you've now got a dilemma.

This scenario is unfortunately all too common, with Starling Bank finding that a third of adults in the UK are owed money by friends, family or work colleagues. With 77% of these lending money to friends or family for amounts over £50.

​After repeatedly asking your friend for the money back, being reasonable and understanding of their circumstances but ultimately being left out of pocket, how can you get money back from someone who borrowed it?

Can you actually take your friend to court?​
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Before involving the court you need to think about your prospects of success. You'll need to have some kind of evidence that you lent the money in the first place and that your friend hasn't paid you back as agreed.
 
If you've got a signed contract, loan agreement or IOU then that's ideal, but the evidence of the loan doesn't always necessarily have to be written.

A legal contract can be verbal if it was just an arrangement you discussed and agreed between yourselves, however there still needs to be something that a court can see, like:

• E-mails, text messages or social media messages discussing the loan, debt and repayment plans
• Bank statements of you initially transferring the money to their account or online payment transfer with reference to it being a 'loan'
• Evidence of repayments being made into your bank account (which then stopped)
• Someone else being present when you agreed to the loan who could be a witness and is willing to provide a statement

If you lend someone money and they don't pay you back, then the legal action is basically a claim for a breach of contract. Therefore as a claimant the responsibility is on you to prove that a contract was made and it's terms have been breached.

You can't get blood from a stone, so if your friend has no cash or assets then there may be little gained from taking them to court. It will cost you money to issue the claim and you'll rack up further fees to enforce any judgment from the court (bailiffs etc.) to perhaps end up with nothing or very little.

But if your friend is employed, owns a car, has equity in a house or some other assets that would cover the debt then it's reasonable to assume that you can make a recovery from them by going through the courts and obtaining a County Court Judgment (CCJ) against them.
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If you've secured evidence of you making the loan and believe your friend has the means to pay you back, then it's time to start getting serious. Sometimes the realisation that you're willing to take the matter further can snap your friend into action.

First step is to write a simple (but formal) 'Letter Before Action' which gives your friend a final chance to settle the debt before court proceedings are started.

As a minimum your letter should include:​​

• A reasonable time-frame for them to repay in full, this should be seven days as a minimum
• Advising them that if payment isn't forthcoming then you intend to issue county court proceedings
• A summary of the loan including the amount, date started and when it should have been repaid

Keep a copy for yourself and send the letter in the post to their home address, or where they are currently living.

The best outcome is that your friend pays you back or at the very least you agree a payment plan that starts to recoup the loan. That way you avoid court costs and will eventually get your money back. If your friend subsequently fails to comply with the payment plan then at least you'll have further evidence to help with court proceedings.

Also if you want to add additional weight to your claim, you can get a solicitor to draft and send the debt letter which should only cost around £60.00 including VAT.
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The last resort in recovering your money is to take your friend to court. This is normally done through the small claims court (for amounts up to £10,000) and will involve you completing some paperwork, submitting it to the court and paying a court fee.

Instructions on how to make a claim can be found on the Gov.uk website. Straightforward claims are able to be done on your own with a little time and effort, but can get complicated if the claim is defended, interest needs to be calculated, or you think bailiffs will need to be instructed etc. As such depending on the amount, it may be wise to instruct a solicitor to handle the claim who should be able to do elements of this for a fixed fee plus disbursements (the court fees). Some of your legal costs can also be recovered from the debtor as part of your claim.

Remember getting money back from a friend, an ex-partner or family member can be a complex and emotional process, so having your lawyer draft the proceedings, provide advice and deal with ongoing contact with the debtor may help in the long run.
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​Being owed money by a trusted friend who won't pay you back is never a good situation to be in, and how you proceed will likely be determined by how much you want to maintain the friendship.

If your friend is in real financial difficulty then piling on court proceedings may not help them or their family, so you may want to consider the full impact of taking matters further. But this is a judgement and a financial call that only you can make. It is also worth noting that you generally have six years to start legal proceedings to recover a debt.

You should never feel guilty about pursuing money owed to you which you lent in good faith. Remember if anyone has jeopardised your friendship it's a friend who has decided to stop paying and communicating with you.
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It's estimated that there are over 8 million stays in UK holiday homes per year, with the trend of guests opting to stay in cottages, cabins, lodges, apartments or glamping sites over traditional hotels only set to grow. But with increasing visitors comes increasing risks, including the risk of an injury compensation claim being made against you.

As a holiday let owner, receiving a personal injury claim from a previous guest can be an overwhelming experience. The claim may allege that some aspect of your property was unsafe or defective which has resulted in an accident and subsequent injuries to a visitor.

Successfully defending such a claim requires a structured approach and professional legal advice. In this guide we outline the initial steps and the kinds of supporting evidence that will assist in defending the case.
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While you may request that guests report any accidents that occur on your premises, it's not uncommon for compensation claims to come completely out of the blue, when there has been no previous complaint or incident reported.

Notification of the claim against you will usually be via one of three letters sent by a solicitor that the claimant (injured person) has engaged:
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• Request for insurance details
• Letter of Claim
• Claim Notification Form

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This letter is usually brief and contains little information of the actual claim. It simply informs you that a claim is being made and requests details of your business or public liability insurance.

At this point you should check all your relevant insurance policies with a view to providing the requested information. The letter should state the date the alleged accident occurred so you may need to find the insurance policy you had at this time. There can be many different types of insurance products for short term holiday homes for you to check, including:
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• Holiday Let Insurance
• Cover provided by your holiday letting agency
• Airbnb AirCover for Hosts
• Booking.com Partner Liability Insurance
• Vrbo Liability Insurance
• Included as part of the service fees you pay your holiday park or caravan site

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Once you have found the policy details they need to be sent to the claimant's solicitor, usually within 14 or 21 days. While it may be tempting to also address the allegations regarding the claim, this isn't the time. Your correspondence should simply provide the requested insurance information.

The claimant's solicitor will then contact your insurer with formal notification and full details of the claim they are making. Your insurance company should then provide assistance as part of your policy and deal with the claim on your behalf.

If after searching all potential policies you discover that there was no insurance in place to cover the accident at your holiday home, then this still needs to be confirmed to the claimant's solicitor.

Again, this simply needs to be a short email advising that there is no insurance that will cover the claim.
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The solicitors may then send you a lengthier Letter of Claim or Claim Notification Form for you to respond to.
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If you don't have insurance or your insurer has refused to cover you for the incident, then you will now be faced with dealing with the claim yourself. The Letter of Claim or Claim Notification Form you have received is the formal notification of the claim and must be responded to.

Upon receiving these formal allegations of the injury claim at your accommodation, it is crucial to deal with it promptly. The first response required is usually just to acknowledge the Letter of Claim, which should be done in the prescribed timeframe to simply confirm receipt and making no comments on liability (fault) or the circumstances of the incident.
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Given the complexities of personal injury law and the timeframes involved, engaging your own defendant injury solicitor (such as ourselves) is highly recommended at this point. As a solicitor will be able to:
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• Review the claim, the evidence and your version of events
• Provide detailed advice on the claim's strengths and weaknesses in law
• Assist in preparing a robust response to the guest's solicitors tailored to your case and instructions
• Support you through the legal process including potential costs, court proceedings and defences

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Whether you are instructing your own solicitor or your insurer is providing legal representation, there will be key evidence that you will need to collate and preserve, to assist your case.

In our experience dealing with holiday home accident claims, most allegations of negligence are made in relation to breaches of the Occupiers' Liability Act 1957. Therefore the types of evidence which we often need to consider include:
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• Photographs and videos of the area where the accident occurred. Ideally taken as soon as possible after the claim is received, reflecting the conditions close to the time of the alleged incident (if feasible).
• Booking details of the guests that were allegedly injured including any special requests that were made.
• Copies of any 'welcome book' instructions or terms provided to the guests in the accommodation.
• Relevant entries in accident books, incident reports and any complaint correspondence.
• Cleaning and inspection records for the property covering checks on the entrances, steps, decking etc.
• Maintenance records for any equipment that was potentially involved in the incident (self-catering facilities, ovens, hot tubs, barbeques, firepits, wood burners, camping equipment etc.)

With supporting evidence such as the above along with your version of events, your solicitor will be able to advise you on your prospects of defending the claim and prepare a response that addresses all the claimant's allegations.

Legal advice is vital in understanding your options on how to deal with the claim. After reviewing details of the case your solicitor will be able to advise on any legal defences that are available to you. Such as:
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• Denying liability by showing your property met all relevant safety standards and regulations at the time of the alleged incident.
• Highlighting contributory negligence where there was failure by a claimant to follow safety guidelines or warnings.
• Disputing the severity or existence of the claimant's injuries as they have been presented.

However once equipped with professional legal advice on the case and its prospects, it may be that the most sensible option for you commercially is to attempt to settle the claim out of court.

Making an early settlement offer is only advisable once you fully understand the strengths and weaknesses of both the claimant's claim and your potential defence. As there are risks and costs involved for both parties if the claim goes to court, which is important to factor in when entering into negotiations with the claimant's representatives.

Defending a personal injury claim is a complex process for even the largest of organisations. So dealing with a claim as a small holiday home business can quickly become an all-consuming experience.

But with a solid understanding of the initial steps to respond to a claim and seeking expert legal advice as soon as possible, you will maximise your chance of putting forward a successful defence and achieving the best possible outcome.