Keeping on top of your business’s finances is an essential part of running any successful business.
It’s clear that the financial landscape has become significantly more challenging recently and the increased cost of living may not only be making it tougher for consumers to spend money but also trickier for businesses to remain profitable.
As a business, this can be an extra challenge when you have slow payers, those who only pay when faced with no alternative but to do so or, worse still those who seem determined not to pay at all.
There are some common misconceptions that can delay or prevent an early referral. Marianne Stirling, our Debt Recovery Manager, seeks to dispel some myths:
1. You don’t have details of the debtor’s current whereabouts
In the vast majority of cases we are able to locate the debtor and commence proceedings, if required.
2. The debt is too small/ it’s not economic to pass it to solicitors
Debts can be recovered quickly and as economically as possible, pursuing sums from as little as a few hundred pounds. We have a range of feeing options, allowing you to select what best enables you to manage and control your costs.
3. The debt is too old
Generally, recovery action in respect of a debt in Scotland can be commenced up to five years after it first became due. If you already hold a decree/judgment this will remain enforceable for up to 20 years.
4. You have concerns about the debtor’s ability to pay
Pre-sue reports can be undertaken, ensuring that you have as much information as possible about your debtor’s likely financial position. For example, we may be able to establish if the debtor owns property or, if an individual, is in employment.
5. Debt recovery is too complicated
We’ll guide you through the instruction, keeping you up-to-date and answering your queries. While we may need some information from you from time to time, you can leave the law and the court processes to us!
6. Court order/ decree – what now?
Once a court order/ decree is obtained further steps may be required to secure payment. We assess each matter on its own merits, proposing enforcement action and discussing the enforcement options with you.
Our Debt Recovery team are here to assist you and your business recover all of the sums owed to you, whether large or small, as quickly and as economically as possible. An early instruction to our team can save you time, improve your cash flow and reduce the likelihood of having to write-off bad debts.
Please contact Marianne Stirling, our Debt Recovery Manager, if you would like further information about the debt recovery services we could offer you.
Published 25 November 2022.
