Debts Owed To Small Business Are A Big Problem
According to a current Government report on the Small Business Commissioner (“SBC”), small businesses in the UK are owed circa £23.4 billion in late invoices which is affecting their cash-flow and even threatening their survival, particularly given the extra strain imposed by the COVID-19 pandemic.
The SBC was set up to tackle late payment and unfavourable payment practices in the UK’s private sector. The Government now recognises that the SBC has inadequate powers to impose any effective sanctions on businesses which operate poor payment practices. Other than “naming and shaming”, the SBC is unable to encourage businesses that are the subject of complaints. For instance in 2019, Holland & Barrett was found by the SBC to be operating a “purposeful culture of poor payment practices” to small businesses.
The Government is actively consulting on giving the SBC more powers, however it has other pressing priorities on the legislative agenda at present, notably the COVID-19 pandemic and Brexit.
If you are suffering cash flow problems and are spending too much time chasing other businesses for payment, we have a range of cost effective recovery solutions for your B2B debts.
Dependent upon the age, number and value of the debts involved, (and your existing terms and conditions), these include a low fixed fee service, or our “no-collection no-fee model”.
In many cases, just a letter from us is enough to get you paid.
The Repeat Offenders
If you have B2B customers who are persistent late payers, you may be aware of the Late Payment Act which entitles you to claim fixed costs and interest for late payment of invoices. However, you may not be aware that the Act also applies retrospectively, allowing you to claim for any invoice paid late in the past six years (five years in Scotland).
You could be entitled to significant sums under the Act, as it allows you to claim interest and compensation on your past invoices which were not paid to terms.
Using the Act we can help your B2B customers prioritise you in future so that you get paid on time.
We have qualified legal specialists with years of recovery services experience in our team.
Over the last 12 months, more than 70% of our clients have been successful in recovering payment, receiving compensation under the Act, or incurring no costs.
We can help analyse your Accounts Receivable Ledger to see what you may be entitled to recover, and advise you on the way forward.
Contact us today to see if our solutions can help you.
Our Debt Recovery Services team can be reached on Collections@cavershamsolicitors.co.uk
What Our Recent Clients Have Said
“Would just like to spread the word of an extremely good service that I had with Caversham Solicitors. They are top drawer and would definitely use again if required. Extremely happy with the outcome especially as it was handled within the current COVID-19 period”
SME owner on receiving news of payment in full and repayment of costs.
“If I could give a bonus star I would. Caversham Solicitors have been nothing but professional and swift in resolving two situations that could easily have got out of hand. Thanks.”