According to a recent survey of 30,000 businesses, using a solicitor when chasing unpaid invoices is still the best way to ensure swift payment. According to fintech company Ormsby Street who surveyed 30,000 businesses, two thirds of letters before action sent by solicitors will result in invoices being paid within seven days. If no such action is taken, by contrast two thirds of overdue invoices will remain unpaid after one month.
Late payment is a major issue for many small businesses in the UK which then seriously impacts upon cashflow. Bearing in mind that the average time for an invoice to be paid to a small business stands at 72 days and the average amount of an overdue invoice is more than £6,000 it is imperative that a business takes effective action to recover its debts.
A well worded letter before action from a reputable and professional law firm will have a significant impact on most debtors to prompt payment. Such a letter will put debtors on notice that court action will be taken if payment is not made by a specified date and the consequences if such action is required to be taken. Our charges for letters before action may cost you less than you expected (or even nothing on some occassions depending on the circumstances) so please contact us for further information.
On the few occassions where sending an initial letter is not enough to elicit payment, we can then advise you every step of the way as to the best and most cost effective method to take legal action against your debtors.