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Introduction
The
pandemic continues to present businesses with various difficulties. Consequently,
cash flow must remain a top priority, with the recovery of any debts or
outstanding payments an essential part of this. The advice to businesses is to
therefore continue chasing any unpaid invoices owed by customers.
Payment
arrangements
It
is likely that some customers will be struggling and unable to repay their
debts in full at the moment. Businesses will need to be mindful of this and
ensure any chasing is done sensitively. For those that are struggling,
businesses are encouraged to work with the customer in finding a viable
solution. This might include offering terms such as payment breaks or accepting
funds via instalments.
County
court
Where
customers are refusing to engage in resolving matters, legal action remains an
option with county courts still open for money claims. Indeed, with several
recent instructions we have found the threat alone has been enough to encourage
customers into paying our clients.
If
proceedings are to be issued, these can be done online and if the customer
fails to respond, judgment will be awarded in the normal way. Where the case is
defended and proceeds through to trial, the courts are increasingly making use
of new technology in order to conduct the hearings via telephone or video
conference.
Enforcement
action
It is the enforcement of any judgments which are most affected by the
current crisis. Bailiffs and High Court Enforcement Officers are not currently attending
premises and the courts are not listing enforcement hearings. It means if a
business is awarded judgment and the customer still refuses to pay, it may be
some time before they can actually recover the money.
Insolvency
While
not a form of debt recovery in itself, some businesses often do threaten
delinquent customers with insolvency action, routinely issuing statutory
demands against late payers. And whilst this continues to remain an option open
to them, it is important to note that all insolvency hearings have been
postponed for the time being and therefore will not take place or be concluded
for some months now.
Summary
Although
an exceptionally difficult time for many, businesses should not be discouraged
from taking any action necessary to recover their unpaid invoices. Indeed, it
may prove essential for some businesses to survive. Therefore, if your business
has any unpaid invoices and you want to know more about our services or need
any assistance with recovery, please email Wesley or call him on 01202 888 300.