01442 233123
or request a call back
Latest News & Advice:

Business Debt Recovery

It is in a business’ best interest to get paid on time for products or services supplied to customers. Unfortunately this doesn’t always happen, leaving the directors with business debt to recover and having a knock on effect on the company’s cash flow. In tough financial times such as a recession, late payments increase as debtors prefer to hold on to cash as long as possible.

If your client is owed money we can advise them on business debt recovery methods from informal to formal collection and offer creditor representation.

Informal Collection
If a business has tried the usual methods to recover the debt, e.g. telephoning, sending reminders etc and this has failed to get results, mediation techniques can be used between the parties involved as an amicable way to achieve debt recovery, helping to keep the business relationship intact. In this case, we offer our input as professionals to increase the likelihood of a positive outcome.

Formal Collection
If mediation does not help and both parties cannot reach a payment agreement formal collection can be achieved through the civil claims system. NB court action should be the last resort and it may be more cost effective to write off small sums.

However, if court action is required a court judgement must be obtained for the business debt to be legally recognised and therefore enable forced collection.

Various routes are available for formal business debt recovery.

  1. County Court Judgement
  2. Bailiff Warrant
  3. Statutory Demand
  4. Winding Up Petition / Compulsory Liquidation

Creditor Representation
Businesses who find themselves as unsecured creditors in insolvency proceedings are the last to get paid, once other officials and secured creditors have been paid often there is very little to distribute and therefore business owners usually receive nothing, meaning the debt has to be written off.

However creditors do have rights in this position and as long as we are notified early enough, we can assist to help recover the debt in this situation. We offer official representation at creditor meetings, helping a business owner to assert their rights and get as much back in the pound as possible. Many think that creditor representation is costly and outweighs the benefits however in certain scenarios we can offer this service to your client on a no-win, no-fee basis.

Find out more with our Creditor Representation Testimonial

info Advice Enquiry Refer
a client

Related News

Contact Us

Business Rescue Centre Ltd
The Maylands Business Centre
Redbourn Road, Hemel Hempstead
Herts, HP2 7ES

Tel: 01442 233123

Terms of Use | Privacy Policy

About Us | News Feed

© Business Rescue Centre Ltd 2012
All Rights Reserved

Company Registration Number: 6869882
VAT Registration Number: 976069377

Further Information

Our panel of qualified professionals are licensed and regulated by the following bodies: