If individuals and businesses struggle to pay your bills, what can you do as the supplier?

According to the Office of National Statistics, UK gross domestic product (GDP) declined by 0.1% in Quarter 3 2023 (July to Sept) and a further 0.3% in Quarter 4 (Oct to Dec). Falling in two consecutive quarters counts as a ‘technical recession’.

The good news is that GDP is estimated to have increased by 0.6% in Quarter 1 2024 (Jan to Mar). Figures for April to June 2024 are not yet published, and we don’t yet know the impact of having a new Labour Government. Anything is possible! 

Cost-of-living crisis

Even if the broader economy is picking up, people in the UK have been experiencing a cost-of-living crisis since 2021. That’s when prices for everyday essentials increase faster than the average income.

This has been blamed on various things, including:

At a time like this, filled with change and financial uncertainty, individuals and businesses can struggle to pay their bills.

In November 2023, The Trussell Trust calculated that a single adult needs at least £29,500 a year to have an acceptable standard of living. This has risen from £25,000 in 2022. Two partners with two children would need £50,000 per year, compared to £44,500 in 2022. 29% of the UK population – which works out to 19.2 million people – belong to households that bring in below those minimum figures.

When you are the supplier on the other side of the equation, you have your own bills to pay. What can you do when you are owed money? Especially when you want to retain the long-term relationship with your customers?

Ways we can help…

You need to have a solid supplier:customer contract in the first place. Our Commercial Law team can help you draw up terms & conditions designed to protect you against all eventualities.

We can also train your team to ensure they set up and run an effective debt recovery process, in-house.

If, despite everything you try, your customer fails to pay, you need to follow the pre-action protocol for debt claims as set out in the Civil Procedure Rules. That’s when you need external help from a specialist solicitor.

In line with the Rules, we’ll send your debtor an official letter threatening legal action.

If they still don’t pay, we’ll send them a warning letter, threatening to start court proceedings.

If that doesn’t work, we’ll help you take your case to court, where, if the debtor tries to defend their case, our Dispute Resolution Department can also help.

Assuming you win the claim, we will obtain the judgement for you, including costs and interest (if applicable).

We can also enforce the judgement on your behalf. For example, here are some of the things we can make happen:

You can book our debt recovery services on a one-off basis or as an annual retainer. Please click the button for more information, or phone us on 01938 552545 to talk to Anne or Elly, our debt recovery specialists. 

Let us help you keep the cashflow flowing!