Debt Recovery
At Askews, our solicitors understand how important effective debt recovery is to maintain strong cashflow and having the capital to meet your strategic goals.
Therefore, we have created a sophisticated Debt Recovery Portal that provides a fast, cost-effective way to get your outstanding invoices paid.
Using the best-in-class technology, our Debt-Claims Portal allows users to create an account and upload their details and those of the debtors, including how much is owed, contact details, addresses, steps taken to recover the debt etc.
The advantage of the Debt-Claims Portal is everything can be managed through one system. For example, if you need to send a Letter Before Action, you can create it through the portal. The letter will then be sent out on our branded Debt-Claims letterhead and actioned the same day, if the instruction is received before 14:00. Furthermore, there is no need to pay for a separate Solicitor.
To recover your outstanding debts quickly and cost-effectively, please register here.
Our specilist Business Debt Recovery Solicitors can also advise and represent you on more complex debt recovery law matters such as:
- Dispute resolution.
- Recovering debts when the Debtor is insolvent.
- The Pre-Action Protocol for Debt Recovery.
- Costs.
We are a diverse, multi-lingual law firm, with solicitors that use the best-in-class technology to provide clients with streamlined, modern, and highly effective commercial debt recovery advice and representation. Askews Legal has a wealth of experience in complex debt collection and has successfully guided SMEs and large organisations throughout the UK on the recovery process.
Below are the answers to some common debt recovery questions.
How can I recover an unpaid debt from an insolvent business?
Recovering money owed from an insolvent business can be challenging, especially if you are unaware of the legal procedure around paying creditors of an insolvent company.
Our experienced Insolvency Solicitors will ensure you have the information required to recover as much of an outstanding debt as possible from an insolvent company.
If the debt is more than £5,000 (for individuals/sole traders) or £10,000 (for companies) you can send a Statutory Demand. This should never be done without obtaining professional advice as the consequences can be costly if a dispute is raised after it is served. A suitably qualified person will always inspect and approve any Statutory Demand created in the Debt-Claims Portal.
A Statutory Demand is an instrument to prove that the person or company cannot pay their debts and are therefore insolvent. If the debt is not paid within three weeks of the Statutory Demand being served then you can issue bankruptcy (for individuals/sole traders) or winding-up (for companies) proceedings against the Debtor.
The risk associated with issuing a Statutory Demand is that the Debtor may claim they have a defence and make an application to set aside the Demand. If they are successful, you are likely to be subjected to an adverse costs order.
Our team will guide you through collecting a debt from an insolvent business and ensure your best interests are protected at every stage.
What should I do if the Debtor disputes the debt owed?
In most cases, commercial debts are not disputed. You do a job for another business or supply it with goods, and it owes you money in return. Business debt often results from a contractual agreement that a certain amount is owed – it is difficult to dispute that you owe a particular amount if it is written in black and white. If a debt is disputed you will need to contact one of our Dispute Resolution Solicitors who can advise and represent you. For recovery of undisputed debts, simply use the Debt-Claims portal to create a letter of claim and/or issue court proceedings.
What interest can I charge on late invoices?
In most cases, commercial debts are not disputed. You do a job for another business or supply it with goods, and it owes you money in return. Business debt often results from a contractual agreement that a certain amount is owed – it is difficult to dispute that you owe a particular amount if it is written in black and white. If a debt is disputed you will need to contact one of our Dispute Resolution Solicitors who can advise and represent you. For recovery of undisputed debts, simply use the Debt-Claims portal to create a letter of claim and/or issue court proceedings
The Late Payment of Commercial Debts (Interest) Act 1998 (Late Payment Act 1998) created a statutory framework in the UK for tackling late payment in commercial transactions. It allows suppliers a right to at least 8% a year interest on overdue payments for goods or services, plus a fixed sum of compensation and reasonable costs of recovering the debt.
The key provisions of the Late Payment Act 1998 are as follows:
- Suppliers are entitled to statutory interest at 8% above the Bank of England base rate for any late payment.
- If there is no agreed payment date, statutory interest starts to run after a 30-day period.
- Once statutory interest begins to run under the Late Payment Act 1998, the supplier is entitled to a fixed sum of compensation in addition to the interest on the debt. The amount is fixed by reference to the size of the overdue debt.
- The supplier also has an implied contractual right to be paid the reasonable costs of recovering the debt, less the fixed sum.
If you have an outstanding debt the first step is always to try and obtain payment via informal means. Often an email or a quick phone call is enough to either get the debtor to pay their invoice/s or explain the reason for late payment and discuss payment terms.
Why choose us?
People choose and recommend us not just in Coventry, Nuneaton, Rugby and Leamington, but across Warwickshire, the Midlands and the whole of the UK., because we get results and in a majority of cases settle disputes outside of Court. Our Solicitors will take care of your debt recovery matter, ensuring you understand the options available and get the advice you need to protect your best interests.
To talk to us about complex debt recovery, please call us on Coventry 02476 231000 or email enquiries@askewslegal.co or otherwise, please create an account on our portal and start collecting your debts today.