Business debt recovery solicitors.

Cash flow is critical to the growth of any business and when customers fail to pay it can be a time consuming process to get what you're owed.

After just a couple of chasing letters and telephone calls, some businesses may opt to ignore the debt in the hope that payment will eventually arrive, but ultimately end up writing off as bad debts further down the line.

We are specialist business debt recovery solicitors with a history of successful recoveries that can offer you a range of simple fixed fee solutions to help you get the money you are owed.
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Our fixed fee business debt collection services.

The debt recovery services we offer are flexible and depend entirely on your circumstances and budget. We can take legal action on your unpaid invoices on your behalf, and usually only require a copy of the unpaid invoice/s to start the debt collection process. Our legal services are structured around a simple fixed fee with no deductions taken from the amount you are owed.

All our debt recovery work is conducted or supervised by a qualified solicitor with over ten years' experience in civil litigation. So you can be confident about the debt recovery legal advice we provide.

We offer the below cost effective fixed fee debt collection packages, from sending a debt recovery solicitors letter to taking your debtor to court.

​These services are suitable for most undisputed debts under £25,000 where both parties reside and the debt was incurred in England or Wales (known as a Small Claim or Fast Track Claim). However if the amount you wish to recover is greater than £25,000 (an Intermediate or Multi Track claim), we may still be able to assist for an additional fee so please contact us with details.

Letter Before Action

Debtor is a Business

Often a business debt recovery letter from a firm of solicitors can be sufficient to recover the amount owed

• For a fixed fee we will:
• Check legal status of debtor
• Calculate any contractual interest that may be due based on your terms and conditions, if this doesn't apply, advise on if late payment compensation and interest can be added to the debt
• Send a letter before action to the business debtor providing 7, 14 or 30 days to make payment
• Advise on potential next action should payment not be made

£ 40 + VAT

Letter of Claim

Debtor is an Individual or Sole Trader

Send the debtor a Letter of Claim and related documentation to comply with the Pre-Action Protocol for Debt Claims

• For a fixed fee we will:
• Check legal status of debtor
• Calculate any contractual or statutory interest that may apply
• Send a letter of claim to the individual providing the required 30 days for payment
• Supply the debtor with an Information Sheet, Reply Form and Financial Statement to comply with the debt pre-action protocol
• Advise on potential next steps based on information returned

£ 40 + VAT

Issue Court Proceedings

Debtor is a Business or Individual

If following a Letter Before Action or Letter of Claim your debt has not been paid, we will commence formal legal proceedings

• For a fixed fee we will:
• Draft a County Court claim form and particulars of claim against the debtor
• Issue a claim form and particulars against the debtor
• If the defendant fails to settle the debt or respond to the court in 14 days, we will request judgment is entered against them
• Inform the defendant of the court judgment (CCJ) and demand immediate payment or face enforcement action
• Advise on debt enforcement options

£ 160 + VAT

(debts up to £10,000)

£ 220 + VAT

(debts up to £25,000)

* plus court issue fee (£35-£1,250) depending amount being claimed, which will be recovered as part of your debt

"UK Small businesses are owed billions in late payments, but a third are reluctant to chase slow-paying customers as they are worried about upsetting them or feel embarrassed."

thisismoney.co.uk

"According to payments processing company, Bacs, the UK's small and medium-sized firms are currently owed £26bn in overdue payments."

telegraph.co.uk

"One in six SME invoices remains unpaid after 90 days and of these, almost half have yet to be settled after six months"

Amicus Commercial Finance

"A typical SME in the UK spends an average of 130 hours a year chasing late payments"

Siemens Financial Services

Let our lawyers help with your business debt recovery today.

Business debts owed by a consumer or sole trader?

Debts owed to a business by an individual or sole trader now need to be dealt with under the Pre-Action Protocol for Debt Claims which came into force 1 October 2017. This protocol requires that businesses now have to provide much more documentation and information to debtors as well as give them at least 30 days to respond.

For business to business debt recovery you are still able to use a 'Letter Before Action' that provides a time frame of between 7 to 14 days. For more detail on what is involved in the new protocol, take a look at our guide What is the Pre-action Protocol for Debt Claims?
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Debt collection agency or solicitor?

A small business debt collection agency can collect debts on your behalf by contacting the debtor using letters, phone calls, text messages etc. to simply chase the debt.  However debt collection agencies don't have any more court or legal powers than you do as a creditor.

​Intervention from a law firm is often enough to prompt a debtor to take action, especially if the next logical step is for the solicitor to issue legal proceedings to recover the debt on your behalf. Sending a letter before action is also commonly the most cost effective solution for small business debt recovery.

Following a successful court hearing, a county court judgment will be obtained which can be enforced with various small business debt collection methods include bailiffs, freezing assets or gaining a charging order on land/property.
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   Recommended Debt Collection Solicitors

"We approached Catalyst Law to help us get a small amount of money owed to us by a customer. We used the fixed fee letter which worked straightaway and we were paid. We were very pleased with the great service, helpfulness and communication that Catalyst Law provided us."

Personal debt collection.

While sole traders, small businesses and SMEs are regularly impacted by non-paying customers, individuals can also be owed money which they wish to recover. If a friend, family member or business owes you money the steps to enforce a personal debt are similar to the above, so please visit our debt recovery for individuals page for more information.

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Bulk debt collection.

If your business has multiple debts to recover we offer a free initial telephone consultation to discuss how our bulk debt recovery service can work for your company. On volume debts (5 or more debtors) our debt recovery team can provide a discounted fee structure depending of the amount owed and your terms of business. However please note that we do not offer 'no win no fee' debt collection.

 Contact us today with brief details of your requirements and we will advise on the best solution.​​
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Further resources on business debt collection.

• How to collect a debt from a customer - Once you've exhausted all the chasing letters and polite phone calls, what are the next steps in getting your invoice paid?
• Owed money, but no contract - Even without a written contract or agreement in place to show a debt, there is probably still other information that you may be able to obtain to prove a payment is due.
• What to do when money is owed by a friend - Helping out friends and family is second nature for most of us, so it is a shame that getting paid back isn't always as easy.
• Claiming interest and compensation on overdue invoices - On most commercial arrears (business to business debt collection) you can claim interest at 8% above the Bank of England base rate if they are not paid on time.
• How long do you have to collect a debt? - How old can a business debt be before it is 'statute barred'? We explain the time limits for claiming unpaid invoices in the UK.

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