In the current economic climate it is only natural if your business is feeling the pinch. Your bank may have withdrawn your overdraft facility and you may be experiencing pressure to pay up from your own suppliers. The fact that your clients may be struggling as well only makes it more important that you consult a debt recovery solicitors firm as early on as possible.

To help guide you through the process of using a debt recovery solicitors TakeLegalAdvice.com has spoken to a range of debt recovery solicitors for their opinions.

Why to use a debt recovery solicitors

Pursuing debt is obviously important for maintaining sufficient liquidity and Daniel M. Russell (right) of debt recovery solicitors Carlsons emphasises the particular significance of this in the current climate. Small debts can quickly become something more substantial, he warns, making it important to use a debt recovery solicitors.

You also need to demonstrate to other debtors that you’re willing to take action says Deborah Brett (below left), a partner at debt recovery solicitors Blandy & Blandy. Before consulting a debt recovery solicitors, it is a matter of balancing this against the consideration of maintaining a commercial relationship. “It may sound strange to talk of a commercial relationship,” says Brett, “but the debtor may just be having short-term cash flow problems.”

Debt recovery solicitors are not your only option, says Brett. “At the other end of the spectrum are organisations that do the work in bulk without really providing any advice. Where a debt recovery solicitor adds value is in suggesting credit management, assessing the recoverability of debt and in continuing to act if proceedings become contested.

What a debt recovery solicitors can do

Your debt recovery solicitor will begin by sending the other party a pre-action letter. If this does not resolve matters, says Jonathan Tyler of debt recovery solicitors Seth Lovis, then there are two options: either to go through a county court or to serve a statutory demand as a precursor to bankruptcy or winding up.

“If insolvency proceedings have already begun it may not be worth your debt recovery solicitors pursuing,” says Brett. “You may just want to ride on the back of the first creditor and see if you can get anything out of them once they are being wound up.”

What to look for in a debt recovery solicitors

Russell recommends using a debt recovery solicitor who is robust and able to deal with information and court deadlines promptly. It is also important that they are someone you feel comfortable with and who are easy to contact.

Tyler says that debt recovery solicitors should also understand the commercial reality of the situation and appreciate that it is about recovering money quickly and cost-effectively.

How you can assist your debt recovery solicitors

Good preparation for meeting debt recovery solicitors can result in money savings advises Russell. Coming with a chronology of events and a bundle of relevant documents can be useful for debt recovery solicitors.

It is also worthwhile carrying out basic checks prior to visiting a debt recovery solicitors to make sure that the other party can actually pay, says Russell. “It is one thing winning a court order and another actually enforcing it.”

Before you even reach the point of requiring a debt recovery solicitors Tyler advises that you take a firm look at your credit control procedures. You should make sure contracts state a specific time for invoices to be paid and that you have processes in place at the expiry of the deadline so that your debt recovery solicitor can act effectively.

What your debt recovery solicitors should be able to tell you

People are more cost sensitive these days, says Russell, and your debt recovery solicitors should be able to give an estimate at an initial meeting. However, the time it ends up taking a debt recovery solicitors depends on whether you get a positive response to the letter they initially send.

Brett agrees, saying that if a case becomes contested then it becomes a matter of ‘how long is a piece of string?’ Bear in mind though, at every step of the way you can instruct your debt recovery solicitor to settle.

Useful links

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