Business. advice for. businesses. Debt Recovery. Law. Enforcing your rights.

Transcription

1 Business advice for businesses Debt Recovery Enforcing your rights Law

2 DEBT RECOVERY Money makes the world go round Most businesses relate to this well known cliché. Cashflow and profitability are the lifeblood of successful business, therefore prompt recovery of outstanding debt is vital. Sintons experience and expertise can help your business in two ways: Recover one-off difficult debts. Provide a complete debt management service, working on a day-to-day basis with your credit control department. We have developed bespoke software to provide clients with constantly updated information on the status of their debts. Our aim is to recover debts in the shortest possible time, with the minimum of cost. We treat each client individually and this is reflected in our philosophy. We will review your current credit management system and provide you with commercial advice on how to make it as effective as possible. Furthermore, we offer in-house workshops and training to ensure you maintain optimum effectiveness. Two golden rules Make sure that your debtor knows that you and your solicitors are serious and will see any action through. Apply relentless pressure to your debtor by using Court deadlines to your advantage. At Sintons we pride ourselves on our track record and our ruthless efficiency your debtors should know that! We do this through our practical and pragmatic approach, our in-depth knowledge of legal procedures and effective use of tactics to create results. Sintons has proved a real asset business. to the business.

3 DEBT RECOVERY PROCESS DEBT Demand for payment/letter before action 7/14 days Debtor pays Debtor disputes No response Valid dispute, negotiate settlement No valid dispute Issue court proceedings Court claim form served on debtor

4 14 days Debtor pays Debtor admits No response Debtor acknowledges service indicating intention to defend Judgement entered Debtor files defence Debtor pays Debtor fails to pay Debtor Action Legal Milestone Successful Outcome Enforcement Matter transferred to dispute resolution department

5 DEBT RECOVERY TOP TIPS Court proceedings are very much the last resort. Review all information and documentation, weigh up the risks of failure, plus the cost against the benefit. Remember a judgment does not always equal cash. See Sintons as a weapon in your armoury but be aware that there are also cost consequences to using legal advisers. The costs can be minimal if the debtor responds swiftly to a legal letter but if a matter becomes defended or disputed then the costs soon escalate. It is often impossible to predict which customer may turn out to be a bad payer. Debts can go bad for no apparent reason and businesses you have dealt with for years might suddenly have a problem. Do not be complacent about any customer. Be aware of early warning signs and seek to limit your exposure. REMEMBER the five watchwords of active credit management: dialogue, documentation, speed, consistency and accuracy. Collect as much information as possible because you always need to consider at the outset how to enforce a judgment if you successfully obtain it. If a debtor clearly has no means of paying then you may consider that the Court process is worthless apart from the fact that the customer will end up with a County Court Judgment registered against them, which would affect their credit rating. If the proceedings are unavoidable, minimise the cost by preparing a clear statement of facts with copies of documentation and correspondence attached. Personal & Family Business Defendant Litigation Healthcare Sintons LLP, The Cube, Barrack Road, Newcastle upon Tyne, NE4 6DB.

6 Business CONTACT THE TEAM Catherine Wood Partner Tel: Samantha Younghusband Paralegal Tel: David Lant Associate Tel: Scott Cable Solicitor Tel: They are quick and reliable, to respond courteous. Andrew Carser Solicitor Tel: Sintons is a leading provider of legal services through our four main service areas. Through our shared values of knowledge, integrity and pragmatism, our people deliver results of real quality and enduring commercial benefit. Personal & Family Business Defendant Litigation Healthcare Sintons LLP, The Cube, Barrack Road, Newcastle upon Tyne, NE4 6DB. Sintons LLP is authorised and regulated by the Solicitors Regulation Authority.