Our advise for debt collecting in these difficult times

We are all aware of the very difficult position small businesses are in due to COVID-19. And, sadly, there are some creditors who may seek to take advantage of your sympathy, and use it as a way of delaying, or even not making, payments.

These circumstances are exceptional, so each customer should be dealt with on an individual basis. However, there are a few tips which could help your decision-making process during these unprecedented times:

  • Monitor all your incoming and outgoing emails with your customers to check which ones are open and responding
  • If your customer asks for extended credit, they should justify it and you may be able to request monthly management accounts so you can monitor any ongoing risk
  • Make your large accounts a priority
  • Chase all customers as soon as your invoices become due
  • Follow up with telephone calls requesting a payment date, or that they pay immediately, if they do not reply to your earlier comunications 
  • Send a final letter reminding your customers that interest and fixed costs by way of compensation are recoverable from business debtors under the Late Payment Act (Late payment of commercial debts (interest) Act 1998) and threaten legal action if there is no response
  • Instruct David Lee Solicitors to send a letter before action
  • If they ignore all your attempts, you can still issue proceedings as the courts are still open
  • https://www.gov.uk/government/publications/money-claim-online-user-guide

David Lee solicitors has a specialist department who deal exclusively with debt collection work. For a free, no obligation discussion, please contact Di Crone on tel 01926 852188 or by email : diana@davidleesolicitors.co.ukor by using the online portal on our website.

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At David Lee Solicitors, we are only ever a phone call or an email away. If you want to make an enquiry concerning potential legal representation, please use the contact form on this site. Alternatively, if you would rather speak to someone in person, you can call us on 01926 852 188

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