News0 min ago
Commercial Debt Collection
5 Answers
I'm going round in circles here so I need some help.
I have a commercial debt to be settled (it's overdue in parts from 60-170 days).
I'd found a firm of solicitors that sent out an LBA for £2.00. Unfortunatley it turned out they also acted for the other company so couldn't continue as a conflict of interest.
So, I've decided I'll just have to send my own LBA. I looked on the money claim sight and found the form I need - 4.1 for Ltd company.
https:/
But here's the dumb question, Do I just copy and paste the contents of that form - exluding the notes - onto our headed paper and send it? I did call the helpdesk but oddly the woman didn't even know what a statutory demand was. Helpful!
I have a commercial debt to be settled (it's overdue in parts from 60-170 days).
I'd found a firm of solicitors that sent out an LBA for £2.00. Unfortunatley it turned out they also acted for the other company so couldn't continue as a conflict of interest.
So, I've decided I'll just have to send my own LBA. I looked on the money claim sight and found the form I need - 4.1 for Ltd company.
https:/
But here's the dumb question, Do I just copy and paste the contents of that form - exluding the notes - onto our headed paper and send it? I did call the helpdesk but oddly the woman didn't even know what a statutory demand was. Helpful!
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That is showing remarkable initiative to save the owners of you business you work for time and money.
I wouldn't copy and paste at all; I would just take the form as is, complete it by amending the MS Word template by completing the relevant boxes, then have it sent securely. Read the process rules which you must follow about how to deliver.
This type of approach often works with recalcitrant debtors; the implication is that your business will start a winding-up order on them if they don't contact you.
I think a director of your business should be taking an interest and overseeing this.
I wouldn't copy and paste at all; I would just take the form as is, complete it by amending the MS Word template by completing the relevant boxes, then have it sent securely. Read the process rules which you must follow about how to deliver.
This type of approach often works with recalcitrant debtors; the implication is that your business will start a winding-up order on them if they don't contact you.
I think a director of your business should be taking an interest and overseeing this.
Hmm. Wrong priorities by directors, then. Directors who aren't interested in their own business' cashflow, plus I guess this is a significant sum owed in relation to your monthly turnover, or you wouldn't be doing this.
If they don't pay (and you are convinced they could pay) are the directors going to have you making an application for a winding-up order. Has the relevant (financial director or company secretary) at least discussed whether that is a step they would be willing to take?
Taking the type of action you are doing is not normally taken lightly - it tends to turn off any future business from the debtor. Maybe that is what your business is happy with.
If they don't pay (and you are convinced they could pay) are the directors going to have you making an application for a winding-up order. Has the relevant (financial director or company secretary) at least discussed whether that is a step they would be willing to take?
Taking the type of action you are doing is not normally taken lightly - it tends to turn off any future business from the debtor. Maybe that is what your business is happy with.
Builder is correct on this as to discussing through the implications. Has one of the directors tried meeting them and discuss through payment? - this can be one way of securing future business with the customer. However, in my experience, most directors will bounce up and down and huff and puff at debtor reviews, rather than getting on their tod and going out to meet principal to principal and help their sales folk get some resolution.
The directors tried to extract funds with no joy and have told me to do what I need to in order to get the funds, including a winding up order. We do a lot of work for their sister company which equates to around 70% of our turnover so they've told me to take the same steps with them too as they are always over 90 days. It's impossible to run a business with cash flow like that and we've been too nice for too long.
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