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.”
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