It’s an age-old problem for small businesses: unpaid debts. Before writing them off, read our guide to some common misconceptions about debt recovery. Getting your money may be easier than you think
‘It’s too complicated to pursue debts’
For a hard-pressed business owner, it may be, but a solicitor can shoulder most of the work. Once they have the relevant information about the debts, they can take over the legal processes, updating you as they go.
‘The debt is small; it’s not economic to use a solicitor’
Debts of as little as a few hundred pounds may be able to be recovered quickly, and solicitors will offer different fee options to allow you to select the approach which works best for your business.
‘The debts are years old; it’s too late to pursue them’
It’s certainly a good idea to instruct a solicitor fairly quickly about debt recovery, as the quicker the debt is pursued the higher the chances of making a recovery. But it’s usually possible to commence recovery action in Scotland up to five years after the debt first became due.
‘The debtor may not be able to pay’
A solicitor can obtain a ‘pre-sue’ report, to ascertain the debtor’s likely financial position. For example, this may reveal whether they own property or are in paid employment, in which case the prospects for recovery may improve.
‘I don’t know the debtor’s current whereabouts’
This often doesn’t matter. A solicitor can usually locate the debtor and start proceedings.
‘The debtor isn’t in Scotland, and I don’t want to get involved in a different legal system’
A solicitor who works closely with partners in England (and further afield) can ensure you have the ability to pursue debts wherever required.
‘Even with a court order, I’m not sure I’ll get the money’
Once you have a court order, you may need to take further steps to secure payment. There are different enforcement options available, and we can explain the pros and cons of each one to you and help you decide how to proceed.
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