The government claims we are now seeing the green shoots of economic recovery...

... Great news if it turns out to be true but for now times are hard. Regardless of the economic climate business can survive and even flourish but cashflow is critical.

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You are expected to keep supplying goods or services but payment is slow…… this is combined with banks tightening up overdraft facilities…… you know that cash flow is critical but what can you do?

Would a letter from a solicitor help?
Would bringing proceedings in the county court solve the problem?
Would threatening a debtor with bankruptcy make them pay?

It’s not only that money is tight it can be the perception that money is tight, and that means that people who are in debt to you or your business hold on to that money for longer. In a recession more than ever cashflow depends on efficient debt recovery.

Whenever a business goes down the route of using a firm of solicitors for debt recovery two critical issues need to be considered

1. Is the debtor 'good for the money?'
2. Is it really cost effective to pursue a certain debt?

Too often when a solicitor is involved in debt recovery a client loses control of a case. You have no idea if you are any closer to getting the money owed to you…..all you know is that it is costing you legal fees.

At Smith Partnership we have made debt recovery services client friendly. We offer a fixed fee service and an on line reporting system called, 'Activate' so you are aware of the status of your debts at any given time and no action will be taken unless you confirm it. But most of all we know how to work with our clients to get the desired result:

1) Is the debtor good for the money?
First things first…… You may know the people you supply goods and services to. But do you know where your debtor lives? What car does he or she drive? You know more about your debtor than we do so tell us.

If you have no idea where a debtor has gone we have business relationships with people who find people on a “no find, no fee” basis. They will report where they live and try and find out whether they own their own home or vehicle. For larger debts we can request a full pre action asset search of an individual or business for a fixed fee.

Remember getting judgement against a debtor is only half the story, enforcement of a debt is also critical. From the outset you need to consider how the debt can be enforced - does the debtor have commercial premises? If so bailiffs can enter without permission. Does the debtor own their own home? If so a Charging Order over it is a potential way to secure your money.

We have seen all the swerves and tricks used by people to avoid paying and we have a few moves of our own. Smith Partnership will help you to become pro-active not re-active in controlling your debts. If you extend credit to limited companies then we can help you draft personal guarantees for the directors. If you provide services on a standard form contract we can help you re-draft it to make it more successfully enforceable.

2) Is it really cost effective to pursue a certain debt?
By using “Activate” you are in control of the debt collection process…..you will have the figures in front of you and you can see a debtor’s response to an action on line. If you want a print out of the status of each of the debts owed to you it is a single mouse-click away.

For example you are owed £1000 by a debtor…… You know where he lives but you don’t know whether he is good for the money. By using “Activate” you know you will spend £10 for a Smith Partnership Letter Before Action (often referred to as a 7 day letter). Go on line and check if the debtor has responded with a proposal for payment or whether he has ignored the letter. At that point you can take a view and decide whether to abandon the process, issue proceedings, petition for the debtor’s bankruptcy or request a report into the debtor’s assets……..all at fixed fees so you know exactly what it is costing you. Whenever you want to check what is happening with the debt you log into “Activate” and you are then able to assess how the debtor has responded to the action taken.

If the debt is disputed we will de-mystify the court process for you…..Is it a small claim?…Is it Fast Track or Multi-Track?….Are costs recoverable from the debtor? We can tell you, and then help you to take a view on whether it is cost effective to pursue a debt.

We can arrange credit insurance and litigation insurance. We will consider alternative funding models if a matter is contested - potentially even “no win, no fee” litigation. Debt recovery is a complex business but you can make it work with Smith Partnership. Contact us today and stop throwing good money after bad.

If you require more details on the service we can offer you, call: