10 tips for reviewing and implementing your credit control procedures: Revisited
The impact of COVID-19 on businesses continues to be severe, as recent statistics show.
In the UK as a whole the most recent ONS statistics show that nearly 30% of businesses, which have not closed permanently, continue to regard themselves as at moderate or severe risk of insolvency.
Reviewing and implementing your credit control procedures
COVID-19 and the resulting lockdown are having a huge impact on the cashflow of most businesses. 25% of UK businesses have temporarily closed down; 38% of businesses still in operation have reported substantially lower turnover; and 36% of firms have 3 months or less of cash reserves left.
Inevitably this pressure on businesses is set to continue but there is also an opportunity for SMEs to improve your cash position by good housekeeping. The Government is encouraging a culture of forbearance between businesses at present but this should not require you to take an excessively lenient approach to recovering debts that are rightfully due.
These costs apply where for a basic template based claim for an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.
||Our fee (excl. VAT)
|Up to £300
|Up to £500
|Up to £1,000
|Up to £1,500
|Up to £3,000
|Up to £5,000
|Up to 9,999.99
|Over £10,000.00 Request Quote
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 7 days, providing you with advice on next steps and likely costs
Matters usually take 6-8 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.
Please contact us for more information.
Niki joined Bermans in 1989 and specialises in debt recovery.
She has an extensive knowledge of debt recovery and legal procedures managing her own uncontested caseload from concept to completion.
She acts for all different types of clients from large factoring companies and banks right down to one man bands who might have one debt to collect.
t: 0151 224 0538
Kevin joined Bermans in 2012 within the Recoveries Department.
He has over 18 years’ experience offering a broad spectrum of recoveries and enforcement ‘know-how’ having worked and developed his knowledge at a number of high profile firms within the debt recovery area.
Head of Litigation & Dispute Resolution
Nick, a partner since 2001, and member of the firms management board also heads up the Litigation & Dispute Resolution and Collections teams.
Nick has a degree in law and qualified as a solicitor in 1997.
He is a highly respected commercial litigator and cited by the Legal 500 as one of the top lawyers in the North West, he has expertise in heavy weight contractual disputes ranging from shareholder, partnership and franchisor issues to complex property construction, insurance and tax litigation. Professional negligence claims is also an area in which he is highly regarded.
As co-founder of the multi-award winning dispute resolution product, Escalate, Nicks innovative, solution driven and price sensitive approach is well recognised by his clients.
Alive to the changing climate, Nick has embraced ADR and has conducted many successful negotiated settlements through mediation.
Tel: 0151 224 0552