Good Debt recovery solicitors can save your business! How can I say this when the perception is that once you use a solicitor to collect owed money this is often seen as the kiss of death to what may have been a good commercial, if not personal relationship? The answer to this situation is twofold and contrary to what you may already believe.
A good, competent and highly experienced debt recovery solicitor can often successfully balance the 'need' for your business to get paid for the work you have done (that's only fair isn't it?) and secondly show the customer/contractor that you mean business, that you're not a pushover and that this is not 'personal' - it's business! Let's assume that you are a sub contractor to the main contractor on a major construction project.
Let us also assume that not only is your current invoice (payment already over 30 days late) but you now are owed money from the last 4 months work.
You know in your mind that this is seriously damaging your business - it's affecting your cash flow and we all know cash flow in any business is King BUT this contractor has provided up to 35% of your annual turnover.
The fact is your losing sleep over this now, this is really worrying.
How are you going get this money and at the same time ensure that you will get further work from this contractor? This is where it's vital to get to know a few facts about the contractor first.
Is it a situation of 'can't pay' or 'won't pay'? If the contractor is claiming that he can't pay you then find out from the other 'subbies' if they are also not getting paid.
If any of them are then you have to assume in your case it's a 'won't pay' scenario - So much for the value you have put on this commercial relationship, you're well down the 'pecking order'! If other sub contractors are also not being paid then it's a real cash flow problem and the old adage 'first in best dressed' in terms of using a solicitor is an option that must be contemplated.
The facts are that whatever relationship you had with the main contractor is now dead and you need the money otherwise your business is dead.
Your contractor knows this, however he's putting 'his' business first! With either scenario you should now consider using debt recovery solicitors as your best option.
I recommend using a solicitor instead of using for example any of the plethora of debt recovery companies that have appeared as you need professionals that know the laws inside out that debtors use to avoid payment.
You see debt recovery solicitors fight cases just like yours every day.
They know all the various tricks that contractors can utilise to not pay you.
In fact, it's almost certain that the contractor is using a solicitor and or an accountant on their end to work out how not to pay you! So what are the benefits? The first tangible benefit which I have alluded to is that a debt recovery solicitor knows how to use the myriad of debt collection laws that can work against you and negate them while at the same time knowing how to utilse effectively those laws that are there to protect your cash flow.
Your solicitor knows how to deal with clients sensitively and still get the result you want, especially if you are looking to preserve the existing commercial relationship, or what's left of it.
Additionally, when you engage the services of a solicitor, as opposed to using debt recovery agencies, your contractor knows that 'you mean business', you're not a pushover and that in the 'won't pay' scenario you should be put to the top of the ledger.
A good, competent and highly experienced debt recovery solicitor can often successfully balance the 'need' for your business to get paid for the work you have done (that's only fair isn't it?) and secondly show the customer/contractor that you mean business, that you're not a pushover and that this is not 'personal' - it's business! Let's assume that you are a sub contractor to the main contractor on a major construction project.
Let us also assume that not only is your current invoice (payment already over 30 days late) but you now are owed money from the last 4 months work.
You know in your mind that this is seriously damaging your business - it's affecting your cash flow and we all know cash flow in any business is King BUT this contractor has provided up to 35% of your annual turnover.
The fact is your losing sleep over this now, this is really worrying.
How are you going get this money and at the same time ensure that you will get further work from this contractor? This is where it's vital to get to know a few facts about the contractor first.
Is it a situation of 'can't pay' or 'won't pay'? If the contractor is claiming that he can't pay you then find out from the other 'subbies' if they are also not getting paid.
If any of them are then you have to assume in your case it's a 'won't pay' scenario - So much for the value you have put on this commercial relationship, you're well down the 'pecking order'! If other sub contractors are also not being paid then it's a real cash flow problem and the old adage 'first in best dressed' in terms of using a solicitor is an option that must be contemplated.
The facts are that whatever relationship you had with the main contractor is now dead and you need the money otherwise your business is dead.
Your contractor knows this, however he's putting 'his' business first! With either scenario you should now consider using debt recovery solicitors as your best option.
I recommend using a solicitor instead of using for example any of the plethora of debt recovery companies that have appeared as you need professionals that know the laws inside out that debtors use to avoid payment.
You see debt recovery solicitors fight cases just like yours every day.
They know all the various tricks that contractors can utilise to not pay you.
In fact, it's almost certain that the contractor is using a solicitor and or an accountant on their end to work out how not to pay you! So what are the benefits? The first tangible benefit which I have alluded to is that a debt recovery solicitor knows how to use the myriad of debt collection laws that can work against you and negate them while at the same time knowing how to utilse effectively those laws that are there to protect your cash flow.
Your solicitor knows how to deal with clients sensitively and still get the result you want, especially if you are looking to preserve the existing commercial relationship, or what's left of it.
Additionally, when you engage the services of a solicitor, as opposed to using debt recovery agencies, your contractor knows that 'you mean business', you're not a pushover and that in the 'won't pay' scenario you should be put to the top of the ledger.
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