It is often the case that one party of the contract pays an agreed sum in exchange for the other party providing goods and services in return. Frequently, the party providing goods and services does not receive payment by the agreed date. In these circumstances the paying party is in breach of contract, and the party providing goods and services must take steps to recover the debt. To do so they must follow the correct debt recovery procedure to ensure they have the best chance of obtaining payment from the party in question.
If the party providing the goods or service has completed their job according to specification and the paying party has received their invoice, there is no legal reason for the contractor not to receive payment. As a small business, government guidelines state that customers must pay within a period of 30 days of receipt of goods or services unless you have agreed other payment terms.
Once you have exhausted all the obvious avenues of attempting to receive payment for the invoice in question such as emailing the debtor and sending overdue notices, it is time to turn to a Debt Recovery Solicitor. Upon instruction of a Solicitor you should provide them with any evidence of the debt being owed, this may be in the form of payment terms, details of the debt owed, proof that you delivered goods or a service and any means of communication you have had with the debtor establishing the debt. It is crucial that you record the time and date of every encounter between parties, this will help to back up your case. Whilst it may seem obvious, you should always ensure that all the information on an invoice is correct. Incorrect information can cause disputes and delays.
The general procedure your Solicitor will carry out is as follows:
- Your Solicitor will send a Letter Before Action;
- If unsuccessful, legal proceedings will be initiated to recover money through the Courts;
- Your Solicitor will file your Claim at Court;
- If the debtor agrees, you will attend Alternative Dispute Resolution, otherwise known as Mediation;
- Court ruling;
- Enforcement of judgment.
It is not uncommon for Clients to worry that the cost of pursuing a debt will cost more than the debt itself which is why we offer various funding methods subject to the circumstances of each case to ensure it is cost effective.
Our Team will handle your Debt Recovery matter in such a way to ensure that your commercial reputation is unaffected. Our Debt Recovery Team often assist business owners located in Skegness, Boston, Sleaford, Lincoln and throughout rural Lincolnshire. To speak to a member of the Team call us on 01754 897150 or start your claim online.