The power of a solicitor’s letter in debt recovery
A copy of a Wards Solicitors' letter received recently, covered in rather gratifying PAID stamps, clearly shows a legal letter can work wonders when it comes to debt recovery.
This has been backed up by a recent survey which found that what is known as a 'letter before action' (LBA) - a warning shot fired by a solicitor before any legal action begins - is highly effective in the debt recovery war.
According to a financial technology company which recently questioned 30,000 of its customers, an LBA will result in an invoice being paid within seven days in two thirds of cases.
By contrast, if no LBA is sent, two thirds of overdue invoices will remain unpaid after one month.
Small business nightmare
Getting invoices paid reasonably quickly is a major problem, particularly for small businesses. On average, invoices sent by businesses with a turnover of less than £5m a year take 72 days to be paid.
But it's clear that one well-worded LBA from a reputable law firm can make all the difference.
Wards Solicitors can help
Our specialist lawyers in the Business Disputes Team, can draw up an LBA for £50 plus VAT.
Although this will probably do the trick, if it doesn't, she will be able to advise you on whether the likely cost of recovering the debt makes it financially worthwhile starting court proceedings.
If, down the line, there are court and legal fees involved in any legal action, she will also ensure that you claim the full entitlement back under the court rules.
For more information, take a look at our legal guide on the Debt Collection Process