Unfortunately, small businesses often run into problems because clients owe them money. Bad debt can have a significant impact on your cash flow, so if your business is to succeed it’s vital that you control what you are owed.
If a client owes you money, it’s important that you take action as soon as you can. Contact the client and try to find out why the payment is delayed. If you’re not satisfied with the answer and you can’t reach an agreed schedule for payment, contact us for legal advice.
What Action To Take If You Are Owed Money By A Client
You should make it clear yourself or through us that failure to pay will result in legal proceedings.
If the debt is less than £10,000 it is likely to be allocated to the small claims track. This is important because even if you are successful, you are unlikely to recover any of your legal costs. You should still however contact us for advice as costs may be smaller than the debt.
Debts of more than £10,000 will be subject to a more formal hearing. Our specialist lawyers can advise and represent you at such a hearing.
What To Consider Before Starting Legal Proceedings
It’s important to understand why the debt has not been paid. You should consider for example whether the debtor is likely to make a counter-claim, such as claiming that any goods provided were faulty.
You should also consider your trading relationship with the debtor and if you want to continue to work with them in the future. If the relationship is one that you want to maintain, we could help to resolve any dispute through alternative methods such as mediation rather than going through the courts
Contact Us For Help Chasing A Debt
If you’re owed money and would like legal advice, contact Steve Beahan on 0114 294 7868 or get in touch online.
Book a call with one of our expert advisors for fixed-price legal help at a time that suits you.
Contact Our SME Team
Need help with a specific legal issue? Contact us to find out how we could help.