Whether you are a new start up business or an international corporation, bad debt is the proverbial thorn in the side of businesses and commercial entities throughout all levels and market sectors.
Late payment of business debts can have disastrous consequences for companies and can be difference between insolvency or a secure future. Research by a leading insolvency firm indicated that out of a sample of 1000 businesses that entered insolvency during 2018, 34% had debtor days in excess of 57 days, and 15% for longer than 86 days.
As well as affecting business cash flow, late payment can also seriously impede how a business operates both internally and in its external commercial environment with clients, partners, distributors and suppliers. Late payments and bad debts can cause knock on effects along the supply chain, deteriorate business relationships, and can cause irremediable damage.
For many commercial entities, bad debts and late payments have become part and parcel of the business culture, however, there are steps that can be taken to mitigate the effect that late payment and bad debt will have on your bottom line.
With Brexit looming on the horizon, the issue of bad and late debts is expected to get worse. In some circumstances the rise of tariffs and custom duties may be such that making payment on time, or indeed at all, is no longer commercially viable for some parties.
Our commercial solicitors are able to review your commercial contracts and suggest methods by which you can ensure payment terms and practices are brought in line with your operational and financial objectives. We will also discuss the possibility of late payment clauses in line with the Late Payment of Commercial Debts Act to ensure that parties are penalised for late payments and you are compensated for the delay.
In addition, our dispute resolution team utilises a resolute approach in recovering late and bad debts and are well placed and experienced in all manner of debt recovery. From letters requesting to payment to issuing court proceedings and enforcement, our team will represent your interests in line with your business objectives and assist your business in realising the commercial value of its bad and late debts with minimal disruption to your business and business relationships.
For further information please contact Asim Arshad on 01444 460131