More businesses turning to debt recovery solicitors in recession
The economic downturn is prompting a growing number of businesses to use debt recovery solicitors to extract late payments from clients.
According to Leeds University’s Credit Management Research Centre there were nearly 2,000 county court judgments against listed companies in England and Wales in September 2008. This compares with 1,500 in January 2008.
In some sectors, such as retail, property, transport and business services, this increase has been fivefold in the past two years. The centre also claims that average payment delay by listed companies has grown this year from 40 days to 44.
According to debt recovery solicitors, the figures are reflective of conditions on the ground. Jonathan Tyler, partner and head of commercial litigation at London law firm Seth Lovis & Co, says: “There has been an increase in debt recovery work as businesses become less tolerant of allowing debt to go on.”
“In good times creditors have been more lenient for the sake of maintaining relationships, but are less likely to do so now as cash flow becomes more of a concern.”
Find a lawyer >>
Use our free and confidential Matching Service to compare law firms and prices
Other Legal News
As claims grow, employment solicitors warn businesses against age discrimination
Employment solicitors are warning businesses to tread carefully following the high-profile case of Selina Scott and reports of a tripling in the number of age discrimination claims being made.
Employment solicitors anticipate rise in carer claims following landmark ruling
An employment tribunal ruling has paved the way for a wave of 'discrimination by association' claims from Britain's estimated 2.5 million carers.
Legal Guidance articles
Patents, trademarks and licensing agreements
An overview of the nature of patents, trademarks and licensing agreements, the means of applying for them and the protection they provide.
Need to Know articles
Insolvency lawyer
To help guide you through the process of choosing an insolvency lawyer and to give you an idea of what to expect from the service, TakeLegalAdvice.com has asked insolvency lawyers for their opinions.
