Debt Recovery Instruction: Existing Clients
Our debt recovery lawyers are experts in recovering outstanding debts, and we take an understanding but strong approach with your debtors.
If your efforts to recover the debts through your normal credit control process haven’t worked, call our expert debt recovery team for advice on 0330 404 6432.
Recovering the debt quickly
It’s safe to assume if a debtor isn’t paying your invoices then they are experiencing some financial hardship or cash flow problems. Should this be the case, you want to make sure we recover any outstanding debts due to you quickly.
You don’t want to leave it too long; their position may worsen, and you could find other creditors being paid over and above you because you have not taken the necessary steps to recover the debt.
Understanding your debtor’s position
With the above in mind, we always take a ‘sympathetic but strong’ approach with your debtors.
If a debtor receives a letter from us, they already know the situation has been escalated and the very fact you have instructed legal representatives, is often enough to, at the very least, open a line of communication with you.
Communication with a debtor is crucial here. You don’t want them digging their heels in, so we need to understand their position so that we can advise you accordingly.
With this in mind, a number of options are available to as an alternative to just issuing court proceedings. These include;
- Using interest as leverage;
- A threat of cessation of your service;
- Payment plans;
- Threaten stronger action.
All the points listed above must be considered carefully and explained clearly to the debtor so as not to breach any of their consumer rights.
Using interest as leverage
If a debtor has an outstanding debt with you, it’s likely because they can’t afford to pay, meaning the last thing they want is for the balance to increase.
A well-worded letter which states that interest will begin to accrue soon will often persuade the debtor to make contact. If this is combined with a payment plan option, then this can be a very successful combination in recovering the debt.
Cessation of the service
This works best if the service you provide is an ongoing service required by the debtor. It’s important to strike a balance here as you may indeed want to retain their custom. An advanced warning of service cessation along with an attractive payment plan to defer this action can often work well.
This is fairly obvious but often overlooked and a recovery option. We can suggest a number of possibilities such as a decent portion of the outstanding debt to be paid immediately with the balance payable over an agreed term. Or the possibility of smaller payments to begin with the plan being subject for review after a certain time period.
We can work with a number of creative options to ensure the outstanding balance gains some initial momentum in being recovered.
The threat of stronger action
If communication has broken down between you and the Debtor, then we will be taking a very firm approach on your behalf and be suggesting that you threaten insolvency proceedings. Again, it’s important this is handled by us, as there are many pitfalls involved with this legal process.
This approach can often have the effect of the debt being cleared. Maybe it’s the ‘he who shouts loudest’ effect working in practice and it’s common to find no further action is required.
The use of highly consequential actions such as the threat of a bankruptcy or a winding-up petition against your debtor can be remarkably effective. But it’s important that we get this correct legally so we can act on it should the client call remain in default. Also, empty threats can often leave the client in a stronger position.
Small claims debt recovery and fixed fees
Typically less then £10,000, small claims can still be significant to the operation of your business, and not recovering your outstanding balances in a timely manner can have a serious impact on your cash flow.
The Small Claims Court is set up to expedite the recovery of smaller sums and we can act for you or your business in the ‘Small Claims Court’ for a fixed fee. This will vary depending on the level of assistance you require from us and we offer 3 levels of service;
- Basic – well suited to especially low-value claims, or for people who have some prior experience of the Small Claims Court and require only minimal assistance.
- Standard – this will be suitable for most Small Claims cases.
- Superior – for complicated cases, with multiple witnesses, complex legal issues or a counterclaim perhaps, or for people with no prior knowledge of the Small Claims Court.
Full details can be found here.
Larger debt recovery fees
We know our clients don’t like surprises, especially when it comes to fees.
Transparency is our goal and with this in mind we have published and full list of our fees here.
Of course, quality is a byword for us at Lupton Fawcett and quality doesn’t always come cheap – nevertheless, we will endeavour to ensure that once we have a full appreciation of your requirements you will receive a realistic quote.
Let’s discuss it. There’s no obligation to proceed, and we are happy to have an initial chat with you free of charge.
Call our experts in the debt recovery team and we can talk about your situation. We’ll be able to advise immediately of the best course of action.
Call our expert debt recovery team for advice on 0330 404 6432.