Ltd Company owe us money

[sherryberry]

My husband has a limited company and has been chasing a creditor (another limited company) for over 6 months. The company that owes us money is not insolvent. We have threatened legal action but need to know what to do. Can we issue a claim in the Small Claims Court like with personal debt? The debt is for circa �1400 which is a lot for a small business. Thanks in advance

[SlackAlice]

Small claims court is'nt the answer. You need to see a solicitor and arrange for them to write a 7 day letter to settle and then in the event of non-payment get them to issue a County Court Judgement against the debtor. You can get the solicitors fee's added to the debt.
The solicitor will assist you with the correct terrminology, mines probably flawed as Ethel will probably confirm :)

[Buenchico]

HM Courts Service provides information about debt recovery for small businesses. This shows that you don't need to use the services of a solicitor. Indeed, it specifically provides this warning:
"If you have a solicitor and your claim is for less than �5,000, you will usually have to pay for his or her help yourself, even if you win your case".

The information is quite comprehensive. It includes a specimen letter to send to the other party. There's also a phone number for obtaining further help. You can even issue your claim online:
http://www.hmcourts-service.gov.uk/infoabout/c laims/business/index.htm

Chris

[spoodle]

A Company becomes insolvent if it cannot meet its debts as and when due, you can therefore threaten the Company that you will take out a winding up order on them if they cannot pay your debt, this maybe enough for them to cough up. I'm no Solicitor and not sure of all legalities but this has worked for me in the past. Sadly tho if the Company are genuinely insolvent and do get wound up your unlikely to get anything at all. If the Company is having genuine cashflow problems it would be far better to get a payment plan in place so you at least get your money in stages and eventually in full.

[sherryberry]

Thank you all very much for your help. Brilliant answers - am on the case now.