How do I recover money someone owes my business?

Question

A client owes my business a few thousand pounds for work we completed and keeps ignoring my invoices and reminders. What can I actually do to get paid?

Liam Davis · Accepted Answer

Start by building a clear paper trail, because it will matter if the dispute escalates. Send a polite but firm reminder, then, if that is ignored, a formal letter before action that sets out exactly what is owed, for what, and gives a deadline to pay before you take further steps. For a straightforward, undisputed business debt you also have the right to charge interest and reasonable recovery costs under the late payment legislation, which you can mention. If they still do not pay, your main routes are a county court claim, and for sums up to a certain limit this goes through the small claims track, which is designed to be used without a lawyer and keeps costs low. There is also a statutory demand procedure that can be used against companies in some circumstances, though that is a more aggressive step.

Matthew Allen · Answer

Before rushing to court, it is worth a quick check that the debtor can actually pay, because a judgment against a business with no money is of limited use. Where the amount justifies it, a lawyer's letter before action often prompts payment on its own, and mediation can resolve genuine disputes more cheaply than a trial. Keep copies of the contract, invoices, and all correspondence. This is general guidance rather than advice on your specific debt, and the right approach depends on the amount and whether the debt is genuinely disputed.

How do I recover money someone owes my business?

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