Commercial debt recovery starts with a practical question: is the unpaid invoice enforceable, and is the debtor worth pursuing?
We review the debt, the debtor and the recovery options before you spend money on formal action.
This is better than only saying “we recover debts”. It links directly to the photo: people calculating, reviewing and deciding.
✓ Is the invoice enforceable?
✓ Is the debtor able to pay?
✓ Can interest be added?
✓ Is court action worth it?
William Slivinsky
Debt Recovery Adviser
Every business and every debt needs a dedicated approach. In many cases, speaking to your commercial debtor through a proper ADR and negotiation process can produce the most cost-effective result.
Before recommending formal debt recovery action, I look at the invoice, the debtor, the dispute position and the realistic route to payment.
Commercial debt recovery starts with checking the debt, the debtor and the route to payment
Before sending a Letter Before Action or starting a County Court claim, it is important to check whether the unpaid invoice is enforceable, whether the debtor has the means to pay, and whether formal recovery action makes commercial sense.
A CCJ, High Court enforcement or winding-up petition may create pressure, but they do not always guarantee payment. If the debtor is a limited company with no assets, no trading activity or signs of strike-off, the recovery strategy should be checked before costs are incurred.
In your free initial debt check, we consider:
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Invoice enforceability
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Genuine dispute or delay tactic
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Late payment interest and compensation
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Letter Before Action
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County Court claim options
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CCJ and enforcement value
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High Court enforcement prospects
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Debtor trading status
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Strike-off, insolvency or phoenix warning signs
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Winding-up petition suitability
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Commercial debt recovery process: what we check before action
A successful commercial debt recovery strategy is not only about sending a demand letter or starting a County Court claim. Before formal action is taken, the debt, the debtor and the route to payment should be checked together. This helps identify whether the unpaid invoice is enforceable, whether the debtor is likely to pay, and whether legal action, enforcement or insolvency pressure is commercially sensible.
Invoice enforceability
The first question is whether the unpaid invoice can actually be enforced. We look at the invoice, quote, purchase order, written terms, delivery evidence, proof of work, payment date and communications with the debtor. A clear invoice is helpful, but the stronger position is where there is evidence showing what was agreed, what was supplied and when payment became due.
Genuine dispute or delay tactic
Some debtors raise a real dispute about the goods, services, price or performance. Others use complaints as a delay tactic after receiving the benefit of the work. Before taking recovery action, it is important to identify whether the dispute is genuine, whether it was raised before payment became due, and whether the evidence supports your position.
Late payment interest and compensation
In commercial debt recovery, an unpaid business invoice may allow you to claim late payment interest and fixed compensation. This can increase the amount demanded and place proper pressure on the debtor. We check whether interest and compensation can be added and whether they should be included in the demand letter or later claim.
Letter Before Action
A Letter Before Action is often the first formal step. It should clearly identify the debt, the invoice, the amount owed, interest, compensation, evidence relied on and the deadline for payment. A strong letter is not just a threat; it shows the debtor that the debt has been reviewed and that the next step has been considered.
County Court claim options
If the debtor does not pay, a County Court claim may be appropriate. However, court action should not be automatic. We consider the value of the debt, the evidence available, the risk of a defence, the debtor’s status and whether obtaining judgment is likely to lead to actual recovery.
CCJ and enforcement value
A County Court Judgment can confirm that the debt is legally owed, but a CCJ does not guarantee payment. The important question is whether judgment will create real pressure or open useful enforcement routes. If the debtor has no assets, no trade or no reason to protect its credit position, the value of a CCJ may be limited.
High Court enforcement prospects
High Court enforcement can be effective where the debtor is trading and has assets that enforcement officers can reach, such as vehicles, stock, equipment, premises or money in the business. It may be less effective where the debtor company has stopped trading, moved assets or has no visible commercial activity.
Debtor trading status
The debtor’s trading position is central to any recovery decision. A limited company that is active, trading and protecting its reputation may respond to formal action. A company that is empty, dormant, closing down or ignoring creditors may require a different strategy. Checking trading status before spending money can avoid wasted recovery costs.
Strike-off, insolvency or phoenix warning signs
If the debtor company is trying to dissolve, has stopped trading, changed address, moved customers or appears to have continued the same business through another company, the recovery strategy must be adjusted. These warning signs may point towards strike-off objection, insolvency pressure, asset-transfer concerns or phoenix company issues.
Winding-up petition suitability
A winding-up petition can be a serious pressure tool for an unpaid company debt, but it is not suitable for every case. It should usually be considered only where the debt is undisputed, the company has failed to pay, and there is a commercial reason to use insolvency action. If the company is already empty, the cost and benefit must be assessed carefully.
