Debt Recovery in Franchising

Debt recovery is a vital part of any business with supplier agreements and we have a dedicated team on hand to offer comprehensive support and assistance at every stage of the debt recovery process. We act on behalf of a wide range of clients from large national organisations to small family businesses and provide an efficient, personal and professional service. Our aim is to recover your debts as quickly and cost effectively as possible.

We have invested in developing the latest case management system resulting in a user friendly online facility that enables you to submit new cases to us via the internet. Our unique system also allows you to have access to up to date

information about your current cases and reporting facility, 24 hours a day, 7 days a week.

We operate a transparent fixed fee charging structure which enables our clients to keep track of costs at every stage of the process. Our charging structure is also flexible and we can agree to charge in other ways including on a commission basis.

We normally start a new case by sending a letter before action which requests payment from the debtor within a specified time and states, in no uncertain terms, that in default, Court proceedings will be commenced which will include a claim for costs and interest.  An alternative to a letter before action is to send a Statutory Demand which is a formal notice pursuant to the terms of the Insolvency Act.

If the debtor does not pay the debt or contest the demand within 21 days you would then be entitled to commence formal insolvency proceedings. Due to the formal appearance of a Statutory Demand and the possible consequences in the event of non-payment this can be a much more effective method of recovering payment. To proceed with a  Statutory Demand the debt must be over £750 and you must not know of any dispute in relation to your claim.

If payment is not made in full after our pre-issue demand is issued, on your instruction we will commence legal proceedings at the County or High Court. Before issuing proceedings we will perform a credit check on your debtor, if appropriate, by using our in-house facility. Fixed  costs, the Court fee and statutory, contractual or late payment interest are added to the debt and  are recoverable from the debtor if a successful  recovery is made. Upon receipt of the claim form  the debtor will either pay the debt, admit the claim, defend the claim or do nothing.

If the debtor responds, we will contact you and advise you accordingly. Judgement is entered against the debtor by us automatically if the debtor fails to respond to the claim form within 14 days. A Judgement Order in default is payable forthwith and at this stage we normally write to the debtor to formally request payment within 7 days.  Alternatively, we can immediately proceed to the final stage of the process, which is enforcement proceedings and we will advise you of the most appropriate method, whether this is Enforcement Agent (Bailiff), Attachment of Earnings, Charging Order, Third Party Debt Order or Order to Obtain Information. 

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