Business Debt Collection

Clear, practical legal support
for business debt collection

An outstanding commercial debt can seriously jeopardise your cash flow and damage your business operations, not to mention your peace of mind. Very few business owners relish the task of debt recovery, so our goal is to make the process clear, efficient, and as stress-free as possible.

Back to Company and Commercial Law

We have extensive experience in managing commercial debt recovery. To help you maintain positive business relationships where appropriate, we will discuss the approach, tone, and strategy you would like us to adopt when recovering your debt.

What steps are involved in collecting a business debt?

Late Payment Demand

For business-to-business debts, we can send a Late Payment Demand, similar to a Letter Before Action, but stating that you wish to claim statutory interest, administrative fees, and compensation for the late payment.

To issue a Late Payment Demand, the debt must arise from a transaction carried out in the course of business by both parties.

Court Action

If payment is not received by the date stated in the Late Payment Demand, you can instruct us to commence court proceedings.

County Court Judgment (CCJ)

If the debtor still fails to pay after court action has been taken, we can obtain a County Court Judgment (CCJ). This allows a bailiff or enforcement officer to visit the debtor’s premises with the authority to seize and sell goods to recover the outstanding amount.

How we can help you manage your debt collection issues

Chasing overdue debts can drain valuable time, resources, and focus from your business. With many years of expertise in commercial debt collection, we ensure the process is handled swiftly, professionally, and cost-effectively, protecting both your financial position and your reputation.

Speak with a Bennett Oakley expert today

Looking for legal support? Get in touch with our solicitors, and we’ll connect you with the right expertise to meet your specific needs through our trusted legal team and professional partners.

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FAQ Topics

How long does it take to recover a business debt?

The time frame for recovering a commercial debt depends on factors such as the debtor’s willingness to pay, the complexity of the case, and whether court action is required. In straightforward cases, debts can sometimes be recovered within a few weeks, but court proceedings can take longer.

What is a Late Payment Demand?

A Late Payment Demand is a formal letter sent to a debtor in a business-to-business transaction, requesting payment of the overdue amount along with any statutory interest, administrative fees, and compensation. It is often the first step in the debt recovery process.

Do I have to go to court to recover a business debt?

Not always. Many debts are recovered through negotiation or after sending a Late Payment Demand. Court action is only necessary if the debtor refuses to pay or disputes the debt.

Can you recover costs and interest on unpaid invoices?

Yes, in many business-to-business cases, you can claim statutory interest, compensation, and reasonable recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998. We can advise you on the amounts you are entitled to claim.