Are you a business that is owed money? Are you getting tired of your payment reminders constantly being ignored or tired of promise after promise that payment will be in your bank by the end of the week, only to find that it never arrives?
It can be a sticky situation; many businesses are not aware of their options and unfortunately end up having to write off the debt which inevitably has an impact on cash-flow. However, if your debt is a business to business debt, then do not hesitate to give Legatus Law a call as we are here to protect you and your business at every step.
There are a number of options that you can look at to recover the debts due to your company. The option which is most suitable for you will depend on the value of the debt and complexity of the matter.
Step 1 – A demand letter for payment
On many occasions, once a firm of solicitors are instructed in pursuing the debt, the debtor may make payment to avoid further proceedings being brought against them.
A demand letter is a request for payment to be made in the first instance. It details how the debt has arisen and what you consider to be outstanding and due for payment. The letter sets out a specific deadline by which payment should be received or alternatively, a full response would be required detailing why payment has not been made.
What information is required for a demand letter?
To send a demand letter out on your behalf, we simply require:
- Background/summary as to how the debt has arisen, which can be done by a quick telephone conversation.
- Copies of the outstanding invoices and details of any payments received.
- Agreements/terms and conditions that were in place between the parties.
- Copies of any relevant correspondence.
Should the matter be more complicated, we will discuss the requirement of any additional information from you.
Step 2 – If payment is still not received – Issue Court Proceedings
If the third party fails to make a payment following the demand letter and no agreement can be reached with the debtor in respect of payment, the next step is to issue court proceedings for the debt.
The process of issuing court proceedings will vary based upon the value and complexity of your case. Should you wish to discuss your options, please do contact us.
An Alternative option – Winding Up Petition
If a debt is undisputed and the debtor company is unable or unwilling to pay their debts as they fall due, then you can look to wind the debtor up. Please be aware that the debt due must be over £750.00. In some instances, your petition may attract support from other creditors and we can advise you on every step of this process.
Should you require assistance in respect of any outstanding sums due to your business, please do not hesitate to contact Rashmi Dubé or Siobhan Dexter on +44 207 873 2279 (London) / +44 113 302 1330 (Leeds) or email firstname.lastname@example.org or email@example.com.