Cash flow is key to business survival. However, cost effective debt recovery (not “throwing good money after bad”) is also important.  Holmes & Hills offer commercial debt recovery services that are cost-efficient and professional, these include:

• Letters before action
• Service of statutory demands
• Obtaining a County Court judgement
• Winding-up petitions
• Enforcement of judgements
• Instructing a bailiff

Cost-effective debt recovery:

To ensure your debts are collected cost-effectively, Holmes & Hills’ commercial team of solicitors will outline your available options and advise you on the most appropriate course of action to take. The advised course of action will take into account:

• The level of debt you are seeking to recover
• The period of time the debt has been outstanding
• The condition of the debtor’s finances

Your right to claim fixed sums in respect of your debt recovery costs:

The Late Payment of Commercial Debt (Interest) Act 1998 is designed to encourage your commercial debtors to pay their invoices promptly. However, it is important to note the Act does not apply to private individual customers owing monies.

 The Act determines fixed sums recoverable from the debtor in addition to the debt. These are intended to reimburse the business for the cost of, for example, sending reminder letters, making phone calls or instructing a solicitor to pursue/collect the debt.

The sums recoverable are determined in the Act and relate to the value of the outstanding debt. Holmes & Hills initial fixed fee service is priced in line with these recoverable sums.  

For details of Holmes & Hills’ initial fixed fee debt recovery service and information on how much you can recover from your debtor in addition to the debt owed, please see our Letters Before Action page.

Your right to charge interest on unpaid debts:

The Act also gives businesses the statutory right to charge interest on invoices which remain unpaid after the due date – at a rate of 8% above the Bank of England’s base rate. Because this is a statutory right you do not need to include it in the terms and conditions of the supply contract or inform the customer of it prior to the transaction.

Recovering debt from a private individual or customer:

 Whilst the Late Payment of Commercial Debt (Interest) Act 1998 only applies to commercial customers, businesses can charge individuals interest on unpaid invoices and/or reasonable recovery fees by including these provisions in the terms of the supply contract.

As part of our fixed fee debt recovery service, Holmes & Hills commercial solicitors will collect debts from private individual customers on behalf of your firm and calculate any recoverable interest or costs associated with recovering the debt.  

For details of what Holmes & Hills’ initial fixed fee debt recovery service entails, please see our Letters Before Action page.